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Group Legal Plans required to file 5500?


Guest Sabrina1

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Guest Sabrina1

I'm trying to figure out if these types of plans require a Form 5500, assuming more than 100 employees are eligible. I notice the 5500 shows "prepaid legal" plans as an option in the codes? Is that the same thing as group legal services?

The legal services in question are part of an employee assistance plan where the employees get a short amount of time for legal advice with an attorney for free, and then a discount on legal fees if they go beyond the free advice period.

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If it's an "employee-pay-all" program (employer doesn't "sponsor" or pay any portion of the cost and simply accomodates the after-tax payroll deduction of premiums) then it's not an employee welfare benefit "plan" subject to ERISA and no 5500 is needed.

If the employer is "involved" (pays any part of the cost) then it's an ERISA plan.

Think of it the way you'd look at a non-ERISA 403(b) plan.

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Guest Sabrina1

The employer pays a flat fee per employee to the EAP provider for all of the combined EAP benefits (one of which is 30 minutes of free legal advice).

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