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A MEWA that is not an ERISA welfare benefit plan can file one Form 5500 on behalf of all employers who purchase benefits from the MEWA if the MEWA is a group insurance arrangement ("GIA"). A GIA is an arrangement that: 1. provides benefits to the employees of two or more unaffiliated employers; 2. fully insures one or more welfare plans of each participating employer; 3. uses a trust or other entity as the holder of the insurance contracts; and 4. uses a trust as the conduit for payment of premiums to the insurance company. See DOL Reg. 2520.104-43 and 2520.104-21. I'm trying to figure out what kind of trust must be used (numbered paragraph 4 above) in order for an arrangement to qualify as a GIA. Can the trust be a taxable trust, or must it be a tax-exempt trust? For what purpose must the trust be established? It is only for accounting purposes? Any insight or thoughts are greatly appreciated!
