ERISA Plan Doc Questions

[oriecat]

I am trying to figure some stuff out regarding our welfare plans.

1. Without a ‘wrap-around’ plan document to bundle any/all of the plans into one “Plan”, are separate 5500 filings required? (We have previously filed one 5500 for the medical, dental, life plan and one for the Section 125 plan. We do not seem to have a wrap-around document bundling the plans. We only have a very old SPD that lists the benefits as one plan, but it is no longer current with ERISA SPD requirements.)

2. Are there any possible consequences if a single 5500 has been filed, but there is no wrap-around document, or if it is lost or out of date?

3. If plans are not bundled, can enrollment in one plan be contingent upon enrollment in a separate plan? For example, we require employees to elect both medical and dental coverage. If they are not bundled together, can that be required?

Thank you!!

[Ron Snyder]

1. Yes, separate 5500s would be required, IMHO. However, in the old days a SPD plus corporate minutes evidencing intent that all plans be considered as one might have been sufficient to treat the plans as one.

2. Of course there any possible consequences if a single 5500 has been filed without appropriate documentation. People get in trouble for out-of-date documents all the time. However, since we may still be in a remedial amendment period for required amendments, it may be possible to do a wrap plan with a retroactive effective date. (I did not say to date back!)

3. If plans are not bundled, enrollment in one plan can be contingent upon enrollment in a separate plan if that language is contained in the separate plan and it does not cause prohibited discrimination.

Ask the plan's counsel if a retroactive A&R of the wrap plan can be done now.