5500 Filing and Plan Year

[Guest aw]

Can the 5500 filing plan year be different than you contract year with the carrier?

We have always filed our 5500s based on a 1/1 -12/31 plan year, but started coverage with a new carrier on 4/1/02. The carrier is refusing to provide the Schedule A information for 4/1/02-12/31/02, saying that we must file the 5500 off-cycle.

Thanks.

[Archimage]

Are you talking about an insurance policy? If so, I am assuming you mean that they will not provide with the cash surrender value as of 12/31/02 and will only provide you with information through 3/31/02.

First of all, you must file your form 5500 based on the plan year that is spelled out in your plan document. Second, if they will not provide you with 12/31 information then you should use the 3/31 information in the 5500 kinda like it was 12/31 info.

I hope this makes sense. Please let me know if it does not.

[Guest aw]

This is actually for a Business Travel Accident policy.

Our plan document for our health/welfare plans has a 1/1 -12/31 plan year. If we are required to file a 5500 based on that year, doesn't the insurer need to provide the data that we ask for?

[Archimage]

I am answering based on what I know about retirement plans. I am assuming the rules are the same for welfare plans.

There are many times when insurance policies will provide information on a different year end for certain reasons. I believe the Form 5500 instructions say to use the last known information provided from the insurance carrier. Can anyone verify this?

[E as in ERISA]

No. You use the Schedule A for "the insurance contract or policy year ending with or within the plan year." For the 12/31/2002 plan year, you use the Schedule A for the insurance contract or policy ending 3/31/2002.

[Archimage]

I was close.

[E as in ERISA]

I think in practice, clients will generally provide the most recent Schedule A that they have and that is what gets attached. In many cases, they would already have th 3/31/2003 Schedule A. So that gets attached. But then it messes you up in later years...