New Wrap Plan that includes 3 former seperate plans

[Guest KAHarshman]

A client has decided to create a retro Wrap plan (for DFVC purposes) that will include the 3 seperate H&W plans it formerly filed.

Do we need to amend prior filings to show final report?

Do I need to indicate that this is the 1st filing for the plan? It will be a new plan name and #.

Is the Effective date of the plan the date of the wrap document?

Any other guidance you can offer will be greatly appreciated.

[J Simmons]

Is DFVC permitting the retro Wrap? Does the DFVC rep view it as a retroactive merger of the 3 H&W plans into one? If so, I would think you'd report those 2 separate plans as merged into the 3rd plan on the 5500s for them for the last year, or part of year, they had separate existence as 3 plans. As to that 3rd plan, you'd not indicate that its 5500 for the year of merger or next year as its first year (unless the 3rd plan was in fact first started that year--which I doubt given the facts). Also, I'd do retro merger amendments.

If the DFVC rep sees it as the 3 H&W plans as having terminated and in their place, a new plan encompassing all the benefits that had previously been provided by the 3 separate plans, then I'd do retro termination amendments and final Forms 5500 for the last year, or part of a year, before those plans terminations were effective. I'd also indicate that the 5500 for that year for the wrap plan as its initial filing.

Personally, I like the merger better than the termination/new plan because merger should preclude any employee claiming double benefits during the retro period, first under the 3 separate plans and secondly under the wrap, claiming that the termination amendment cannot be retro to deprive employees of benefits accrued under those 3 plans.