What defines "otherwise excludable employees" in a plan?

The term "otherwise excludable employees" refers to individuals who would have been excluded from participating in a retirement plan, but for specific circumstances outlined in the plan’s design or regulatory framework. The correct answer identifies employees who are covered by the plan but would not have been eligible had the plan only followed the minimum statutory requirements set forth by regulations.

This means that these employees meet certain criteria that allow them to participate in the plan even though, under normal circumstances—like the minimum age requirement or hours of service criteria—they would not qualify. This aspect is key in understanding the inclusiveness of a retirement plan and how it may be expanded beyond regulatory standards to include more employees.

The other options do not accurately capture this definition. For instance, employees who are voluntarily excluded or those who meet all eligibility requirements fall outside the specific context of "otherwise excludable." Similarly, employees currently benefiting from the plan do not align with the idea of being excluded under usual definitions; they are actively participating rather than being counted among those who are excludable but included due to plan provisions. Thus, the focus is on those who could be excluded under normal terms but are included due to the choices made in the plan's design.