Schedule A coverage question

[Guest ak]

Since plan coverage may fluctuate during the year, administrator should estimate the number of persons that were covered by the contract at the end of the policy or contract year. Where contracts covering individual employees are grouped, compute entries as of the end of the plan year.

The above is from the item 1(e) of the 2006 Schedule A. I'm completing this and I have a few questions:

1. If you have an allocated contract, does this information cover only people whose benefits were purchased during the covered plan/contract year?

2. If a person's benefit was fully distributed from the plan in a prior year via a purchase under the contract (i.e., no longer a participant), is that person still considered to be a "covered person" under the contract and thus need to be included in the count when submitting Sch. A information for the contract in a later year. For example, Person A's benefit fully distributed from plan via contract annuity purchase in 2004. If reporting on contract in 2006, is A included as a person covered under the contract at year end or since he no longer has a benefit due under the plan in that year he is excluded, i.e., you only report people who still have a benefit under the plan that is funded by the contract or people purchased during that year.