Help with Multi-Employer VEBA filing...

[Guest Carolyn Barnard]

Question: Does each participating employer under a multi-employer VEBA have to file a separate Form 5500, and if so, if a participating employer is considered as having a large plan, does an audit have to be filed as well? This is the information that the "Trust" is telling each participating employer. The "Trust" files one return and attaches the "Trust" audit.

[Guest cease]

Is there an adminstrator for this plan? In the one case that I am familiar with, the administrator files one Form 5500 that shows all particpants. In addition, the Form 5500 would be subject to one audit report. Hope this helps.

[Guest Carolyn Barnard]

Your situation is exactly what I thought my situation should be. Yes, there is an administrator, and they are the ones telling the participating bank that the individual returns and audits should be done.

[Guest cease]

I rely on the Aspen 5500 Preparer's Manual. Regarding multiemployer plans, the narrative metions that one 5500 must be filed for each multiemployer plan. Participating employer DO NOT file individually for these plans. Reference is made to DOL Reg. 2510.3-37. I do not have the chance to look at this reg. today, perhaps you will find the support you need to go back to the administrator. Good luck!

[Guest HarveyC]

Below is an exerpt from the 2002 instructions. Note that © simply means no election has been made to not be treated as a multiemployer plan. Seems pretty clear these hold then only the plan and not the participating employers needs to file.

Box A(1). Multiemployer Plan. Check this box if the Form 5500 is filed for a multiemployer plan. A plan is a multiemployer plan if:

(a) more than one employer is required to contribute,

(b) the plan is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and

© an election under Code section 414(f)(5) and ERISA section 3(37)(E) has not been made.

Participating employers do not file individually for these plans. See 29 CFR 2510.3-37.

[Guest Carolyn Barnard]

Thank you both for your input. I am emailing the Trust's CPA as we speak to ask why this is the advice they are giving. The only thing I can think is that it's not a true VEBA arrangement or they're more confused than I am!

[GBurns]

Whether this is a "true VEBA arrangement" or not has no bearing on the conditions quoted by HarveyC from the Form 5500 Instructions.