Nancy D Posted July 30, 2012 Share Posted July 30, 2012 Hi all, I am in the process of creating a Wrap (Document and SPD) for a client. I believe I have everything covered except the requirement to explain how insurer refunds (dividends, dmutualization, etc) are allocated. I understand this differs from carrier to carrier, but I am just looking for sample language for a jumping off point. Any help or pointing in the right direction would be greatly appreciated. Thanks Link to comment Share on other sites More sharing options...
SLuskin Posted August 17, 2012 Share Posted August 17, 2012 Nancy, where did you see that this is a requirement in the wrap document and SPD? I found a blurb from someone that does 5500's but have not been able to confirm this anywhere. Also, have you seen anything which says an employer loses its small plan exemption if this language is not in the SPD? Link to comment Share on other sites More sharing options...
GMK Posted August 17, 2012 Share Posted August 17, 2012 Are you talking about this stuff: http://benefitslink.com/boards/index.php?showtopic=51623 Link to comment Share on other sites More sharing options...
Peter Gulia Posted August 18, 2012 Share Posted August 18, 2012 Even if relevant law does not require plan provisions about insurer refunds, might we prefer plan document provisions so that deciding what to do with dividends, demutualization proceeds, medical-loss-ratio rebates, and similar payments need not be a discretionary decision? If so, can a plan provide that all such payments belong only to the employer? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
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