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LTc subject to 5500 filing


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The answer to your question depends on if the LTC benefit is considered a welfare benefit plan under ERISA.

ERISA §3(1) includes in the definition of a welfare benefit plan and welfare plan a plan which provides medical, surgical or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment.

Since a long-term care (LTC) plan provides hospital or other benefits which constitute welfare benefits the LTC plan can be considered a welfare benefit plan under ERISA §3(1). However, under regulation §2510-3-1(j), there is an exemption to the above definition for group or group type insurance programs offered by an insurer to employees or members of an employee organization. The exemption applies if the employer does not make any contribution to the insurance program, participation in the program is voluntary and the employer does not endorse the program or receive any consideration in connection with the program. If the employer is merely collecting premiums through payroll deductions and remits them to the insurer and the employer receives no consideration in connection with the program it will not be considered a welfare benefit plan under ERISA.

If the employer does not make any contributions and participation is voluntary and they do not endorse the program or receive any consideration, then it would not be considered a welfare benefit plan under ERISA §3(1) and therefore not subject to Form 5500 filing requirements.

If the employer does contribute to the program or endorses the program in any way, then it would be considered a welfare benefit plan under ERISA §3(1) and subject to the Form 5500 filing requirements if the plan covers 100 or more participants at the beginning of the plan year, whether it is funded or unfunded.

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