Wrap Document - Consolidated 5500

[Guest KEK]

We have provided 4 types of welfare benefits (medical, dental life, LTD) since 1992 and have always had over 100 participants. We discovered that we never filed Form 5500s for them.

We are filing under DFVC and are currently drafting a wrap around document to consolidate the welfare benefits into one plan.

Question: Can we file a single consolidated Form 5500 back to 1992? We'd like to avoid additional late filings (and DFVC fees).

I realize that we can definitely file a single Form 5500 going forward, but can we do it retroactively? I've heard that ERISA allows you to make corrections retroactively and, therefore, because we now have a single plan document, there is some argument to say that we can file a consolidated Form 5500 back to 1992. Also, for whatever its worth, the wrap document will include language to the effect of, "this document is intended to be effective from 1992 forward."

Thanks for your help!

[Guest F1fan]

I formerly worked at firm which did numerous DFVC filings/wrap documents, and we almost always did retroactive wrap documents to consolidate welfare benefits into one plan. I don't have a specific cite authorizing this approach, but the DOL never objected.

[401 Chaos]

Anyone have an update or recent experience with the DOL and IRS regarding their positions (formal or informal) on adoption of retroactive wrap plan documents as part of DFVCP.

[TPApril]

Different, but related, situation: company has filed their medical 5500 for the past 2 years. They just determined that they should have been filing for those two years Life Insurance and Employee Assistance Program (we have already reviewed determination related to filing EAP plans). they would like to file 1 wrap plan in the past and moving forward. which option is the best approach for the past:

1. create new plan number and file all 3 together for the past 2 years.

2. create new plan number and file wrap plan for only the 2 missed in the past, and 2012, but moving forward bring in the medical, marking 2012 as the final year

3. amend the medical to include the other two as a wrap plan, thereby not paying dfvc fees (they acknowledge responsibility of dfvc fees, just looking for best approach)

[Bill Presson]

TPApril, I would recommend approach 3 to the client, but let them make the choice.

[TPApril]

Bil - what do you see as potential inherent exposure to using approach 3 for the prior 2 years?

[Bill Presson]

Bil - what do you see as potential inherent exposure to using approach 3 for the prior 2 years?

The biggest issue is whether the DOL would agree that it was a single plan if there wasn't a wrap doucument in existence during those years.

I've heard rumors of people creating retroactive wrap documents that were accepted by the DOL but I've actually seen as many of those as I have seen Loch Ness monsters.

[TPApril]

I wish I was as well travelled as you.

[401 Chaos]

Bill,

I guess that all depends on what is meant when someone says "accepted by the DOL"--for example, did the DOL expressly acknowledge that the retroactive wrap was okay after careful review on audit or did the DOL just not ping them (yet) when they filed under DFVCP using the retroactive wrap process. I have seen more of the later than I've seen Nessie but alas the former seems as elusive as the monster.