Retiree medical for only owners/shareholders

[Guest erinf]

A client currently offers retiree coverage in a fully-insured plan to any retiring employee if certain length of service requirements are met. It wants to discontinue this for everyone except owners/shareholders, and is wondering about compliance issues. No one has ever been eligible before, so this change wouldn't affect anyone immediately. I don't see a problem with it (no discrimination issues b/c not self-funded), but I wonder if anyone else does.

[jpod]

Shouldn't be any tax or ERISA problems associated with it, but if you can find a carrier that will allow it please let us all in on it.