Should a 5500 be filed for voluntary vision plan?

[Guest jessica_ward@wellsfargois.com]

I have a client who does not believe that they are required to file a 5500 for their voluntary group vision plan. The premiums are 100% EMPLOYEE paid, and there are over 100 participants.

I believe that a 5500 should be filed, but was hoping to provide applicable documentation on the subject.

Any help would be greatly appreciated!

[JanetM]

From 5500 preparers manual

[C] Welfare Benefit Plans Required to Report

Any employee welfare benefit plan that covers 100 or more participants at the beginning of the plan year must file Form 5500 each year, whether it is funded or unfunded. In addition, any funded welfare benefit plan with fewer than 100 participants at the beginning of the plan year must file an annual Form 5500. In either case, only certain items on the Form 5500 must be completed.

However, a welfare plan with employee contributions that is associated with a Code Section 125 fringe benefit plan (i.e., a cafeteria plan) may file as an unfunded welfare plan if it meets the requirements of DOL Technical Release 92-01. [57 Fed. Reg. 23,272 (1992) and 58 Fed. Reg. 45,359 (1993)] For purposes of these rules, a welfare benefit plan is "unfunded," if benefits are:

1. Paid as needed solely from the general assets of the employer or employee organization that sponsors the plan;

2. Provided exclusively through insurance contracts or policies, the premiums for which are paid directly to the licensed insurance carrier by the employer or employee organization from its general assets, or partly from its general assets and partly from contributions by its employees or members (which the employer or employee organization forwards to the insurance carrier within three months of receipt); or

3. Both.