Search the Community

(I originally posted this topic in the VEBA message board, but was not able to get much input. I'm hoping someone will see it here, and provide advice/guidance) I have a WRAP document that lists the following plans in Exhibit A as being part of the WRAP: Group Health Plan - A Group Health Plan - B Group Health Plan - C Group Dental Plan Group Basic Life Plan Group Voluntary Life Plan Group AD&D Plan Group LTD Plan This is a large plan (10,000+ participants). The Group Health Plans are funded through a VEBA trust. This results in the plan needing to file Schedule H and have an IQPA audit the plan. The other plans (Dental, Life, etc.) do not flow through the VEBA (but they are part of the WRAP). The employee portion of the premium is withheld and remitted to the applicable insurance companies as would be done in a fully insured plan. As far back as I can see (10+ years), the Form 5500 Schedule H and the auditor's financial statements have only reported assets and activity related to the VEBA trust. My understanding is that they audit the plan as a whole, but the financials only cover the Trust. The question has come up this year as to whether or not that is the correct way to prepare the Schedule H and Financials. Should the other plans be included too? I do not believe it would affect the "balance sheet" portion of the Schedule H because the fully-insured benefits would have a net-zero affect, but it would affect the "income statement". Any help or advice is greatly appreciated.

I have a WRAP document that lists the following plans in Exhibit A as being part of the WRAP: Group Health Plan - A Group Health Plan - B Group Health Plan - C Group Dental Plan Group Basic Life Plan Group Voluntary Life Plan Group AD&D Plan Group LTD Plan This is a large plan (10,000+ participants). The Group Health Plans are funded through a VEBA trust. This results in the plan needing to file Schedule H and have an IQPA audit the plan. The other plans (Dental, Life, etc.) do not flow through the VEBA (but they are part of the WRAP). The employee portion of the premium is withheld and remitted to the applicable insurance companies as would be done in a fully insured plan. As far back as I can see (10+ years), the Form 5500 Schedule H and the auditor's financial statements have only reported assets and activity related to the VEBA trust. My understanding is that they audit the plan as a whole, but the financials only cover the Trust. The question has come up this year as to whether or not that is the correct way to prepare the Schedule H and Financials. Should the other plans be included too? I do not believe it would affect the "balance sheet" portion of the Schedule H because the fully-insured benefits would have a net-zero affect, but it would potentially affect the "income statement". Any help or advice is greatly appreciated.

Greetings: Employer has never filed any 500 for their component benefit plans (life, health, vision, dental) because they are under 100 participants (nor do they have an assigned plan number). The insurer gave their FSA plan number 501 (which has also never filed a 5500). Employer now has a wrap plan document. We believe that the Wrap Plan should be plan number 501 (along with all component benefit plans under the wrap). Another vendor believe that the wrap plan document should have a unique number from the component plan documents. Is there any reason why a wrap plan document should not have the same plan number as the component benefits? Thank you