Retiree Medical Form 5500 Participant Count Question

[Guest erisaguru]

How do you determine who should be a participant for a retiree medical plan?

§2510.3-3(d) states that it is the earlier of (A) the date designated by the plan as the date on which the indiv begins participation; (B) the date on which the indiv become eligible under the plan for a benefit subject only to occurence of the contingency for which the benefit is provided; or (CO) the date on which the indiv makes a contribution to the plan, whether voluntary or mandatory.

With respect to (B) - is the not working long enough the "contingency" so should every employee that meets the requirements as long as he/she stays in employment counted as a participant in the retiree med plan?

Thanks.

[Ron Snyder]

Your question is not clear. The "contingency" referred to is the medical service for which the claim would be filed. So long as a person is covered subject to needing medical care, he/she is a participant, even if no claims are incurred. If funds have been set aside for future benefits, but may be forfeited (ie, by termination of employment before a certain date or age), they are not a participant.

[Don Levit]

(B) refers to the length of time designated by the plan that an active employee has been a participant in the group medical plan. For example, if the group plan says that an employee who has been in the plan for 5 years, he would be eligible for a retiree medical plan, then that is the stipulated length of time. He would be eligible whether he has "retired" or not. Retired in this instance means simply leaving the employer.