What are the three types of plans that are deemed to satisfy coverage?

The correct response involves understanding the concept of coverage in retirement plans under ERISA (Employee Retirement Income Security Act). For a retirement plan to satisfy the coverage requirements, it must meet specific criteria that typically consider who is included in the classification of eligible employees.

The focus is on Highly Compensated Employees (HCE) and Non-Highly Compensated Employees (NHCE). HCEs are typically those employees who own more than 5% of the company or who have a certain level of compensation within the top percentage of earners. NHCEs refer to all other employees who do not meet the HCE criteria.

While the statement mentions "Union employees only," it's important to note that unionized employees can be part of a more extensive employee group that enables a plan to cover both HCEs and NHCEs. Therefore, this combination of HCEs and NHCEs, including union employees, aligns with the main provisions under coverage rules of qualified plans, ensuring it meets the non-discrimination requirement set forth by the IRS to promote equity and fairness in the provision of employee benefits.

The other options refer to classifications or categorizations of workers that do not align with the specific criteria needed to satisfy coverage under the qualified plan