SECTION 7. PROCEDURES AND

TRANSITIONAL RULE

.01 Other qualification issues . (1) Use of EPCRS . Plan qualification issues, other than the exclusive benefit issue for which relief is provided under this revenue procedure, may be resolved under the Employee Plans Compliance Resolution System (EPCRS). See Rev. Proc. 2001–17 (2001–1 C.B. 589). (2) Transitional relief for PEOs . For purposes of determining whether a retirement plan maintained by a PEO for the benefit of Worksite Employees of COs satisfies the requirements of § 401(a)(2) prior to the Compliance Date, a PEO may treat Worksite Employees as its employees.

(3) Transitional Rule for Code section 416 . For purposes of determining whether the Multiple Employer Retirement Plan is top heavy (as defined in § 416(g) (1)(A)(ii)) in its first plan year, the determination date with respect to the first plan year of such plan shall be the last day of such plan year. See § 416(g) (4)(C)(ii).

.02 Determination letters . (1) Determi- nation letter application . Any application for a determination letter on the qualified status of any Multiple Employer Retirement Plan adopted and maintained by PEOs and COs that are seeking relief under this revenue procedure shall be made under the relevant provisions of Rev. Proc. 2002–6.

(2) Time of disqualification provision . For purposes of § 1.401(b)–1(b) the Service will treat the requirement that the PEO adopt a Multiple Employer Retirement Plan by the Compliance Date as a disqualifying provision.

.03 Pending examinations no bar to relief . A PEO Retirement Plan under examination by the Service is eligible for the relief provided by this revenue procedure.