For the most part, the previous chapters have discussed controlled groups as though their membership was unchanging. Of course, that is not the case. Businesses are formed or dissolved. Corporations merge. New shareholders buy stock. All these things can change the composition of a controlled group.
In some cases, the Code gives very detailed instructions on dealing with changes in group membership. In other cases, we have no special provisions. Plan sponsors must react quickly to address the problems that can occur when dealing with changes in group members, or to take advantage of grace periods contained in the law.
 | Q 11:1 Is there a grace period for participation when there is a change in a controlled group? |
| Q 11:2 What is a change in group membership that qualifies for the free pass of the participation and coverage requirements? |
| Q 11:3 Is a similar grace period available for the separate line of business rules when there is a change in a controlled group? |
| Q 11:4 Is there a grace period for the application of the IRC §415 limits on benefits and contributions? |
| Q 11:5 Is there a severance of employment when there is a change in controlled group membership? |
| Q 11:6 Is aggregation for purposes of the exclusive benefit rule extended when a controlled group breaks apart? |
| Q 11:7 Are there any transition rules for SIMPLE plans and IRA arrangements? |
| Q 11:8 Are there any transition rules for SEP plans? |
| Q 11:9 Are there any other provisions of the pension law for which there is a transition period when group membership changes? |
| Q 11:10 Must failing businesses be counted in applying the common control and controlled group rules? |
| Q 11:11 How are changes in group status handled for coverage and nondiscrimination testing if the grace period described in Q 11:1 is not available? |