audit exemption for insured pension plans

[k man]

can anyone clarify what type of plan they are referring to here in the regs.

A pension benefit plan the benefits of which are provided exclusively through allocated insurance contracts or policies which are issued by, and pursuant to the specific terms of such contracts or policies benefit payments are fully guaranteed by an insurance company or similar organization which is qualified to do business in any State, and the premiums for which are paid directly 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: Provided, That contributions by participants are forwarded by the employer or employee organization to the insurance company or organization within three months of receipt and, in the case of a plan that provides for the return of refunds to contributing participants, such refunds are returned to them within three months of receipt by the employer or employee organization; and [Amended April 19, 2000 by 65 FR 21805.]

[BeckyMiller]

See http://benefitslink.com/IRS/5500.html

Go to item 5. This is the DOL response to questions about the definition of an allocated contract. This is currently very controversial with many financial providers claiming that their investments are not subject to audit or reporting because they satisfy the definition of an allocated contract.