Which of the following statements concerning a simplified employee pension (SEP) plan is NOT true?

• A.
• A qualified employee must be at least 21 years old, have worked at least3of the prior5years for the employer, and have received at least the minimum amount of compensation required by the Internal Revenue Code.
• B.
• An employer who signs SEP arrangements is required to make contributions to the SEP.
• C.
• A leased employee (an employee who is hired by a leasing organization but who performs services for another) may have to be included in the SEP of the organization receiving the services if certain conditions are met.
• D.
• Employees whose retirement benefits are part of their union's bargaining agreement with their employer do not have to be considered for coverage under their employer's SEP.