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"Temporary" MEWA


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DOL regulations make it clear that, if a MEWA is created for a temporary period due to a change in control of a business, Form M-1 is not required. The temporary period is limited to the plan year of the change in control and the immediately following plan year. What I infer (correctly or not) from this provision is that the DOL is not concerned with the situation where a MEWA is created for a short time due to a corporate transaction, provided the MEWA "goes away" within the period stated in the regulation. 29 CFR 2520.101-2©(2)(ii)(B).

Does anyone have any experience with DOL on this "temporary MEWA" issue? Also, does anyone have any experience with any state regulators on this type of situation?

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I have considerable experience with both DoL and state regulatoin of MEWAs, but none specifically on point. I believe your inference is correct with respect to the DoL. You should contact the regulator at the state insurance department to know their view of such a situation. I don't believe that they will give you a problem unless the plan is being offered to new people, rather than in process of being closed down or restructured to a single-employer plan.

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