Affiliated Service Group Clause Samples

The Affiliated Service Group clause defines the relationship between a company and other organizations with which it shares significant ownership or service arrangements, typically for the purposes of employee benefit plan compliance. This clause identifies when two or more entities are considered affiliated, such as when they share common management, ownership, or provide services to each other, which can affect how employee benefit plans are administered and regulated. Its core function is to ensure that all related entities are properly grouped for regulatory purposes, preventing companies from circumventing benefit plan rules by splitting operations among multiple entities.