Eligibility credits on the 5500s?

[Guest michaelv]

I do not work much with health & welfare plans, but I was asked a question, as to whether it is correct to include accumulated eligibility credits as a liability on Schedule H of the 5500. Any help with this? Any pros or cons?

Thanks

[Guest 5500]

No. For financial statement purposes, no liabilitiy is recorded for benefit claims payable. The 5500 treats it differently. The instructions say to include a liability for claims that have been processed and approved for payment as well as IBNR's for a welfare plan. Accumulated Eligibility Credits do not meet the definition.