Variable Annuity Contraces

[Guest lforesz]

I have a plan in which some participants have chosen to purchase variable annuity contracts. My question is are Schedele A's required for variable annuity contracts. It appears that they would be required but we have had a hard time getting insurance companies to provide Schedules A for these contracts. Also they don't seem to fit into any particular section on the Schedule A and we're not sure if we are to complete Section 3 or Section 6. Any thoughts would be greatly appreciated.

[R. Butler]

If the annuity contract is provided by an insurance company it should be reported on Schedule A. The insurance company should provide client with the data. If the insurance company does not provide the data the instructions to Schedule A provides guidance.

Data for a V.A. goes in Part II. The specific lines depend on investments and how the contract is setup.

[Guest J. David Wright]

One basic principle seems to be unclear. A variable annuity contract is issued by an insurance company. No entity except an insurance company can issue an insurance contract, including a variable annuity contract. ERISA mandates insurance contracts held by qualified plans report to the Plan sponsor certain information and disclosure relating to such contracts annually for the purpose of reporting in the annual return of the plan, Form 5500. Over the years, I have known insurance companies to send Schedule A information to the agent/broker and since the form may disclose information the agent/broker might not want disclosed to the client, they inadvertently forget to forward it to the Plan Sponsor. Contact the insurance company who issued the contract.