Requirements for a Gov't Entity -- Welfare Benefit Plan

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Does a governmental entity (with more than 100 participants) that sponsors a welfare benefit plan have to file a 5500 for it?

[Everett Moreland]

From 2012 Instructions for Form 5500:

"Do Not File a Form 5500 for a Welfare Benefit Plan That Is Any of the Following:

"* * * *

"3. A governmental plan."

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I am aware of this but does a welfare benefit plan sponsored by a governmental entity automatically make it a governmental plan?

[Everett Moreland]

The answer to your question depends on facts you have not described. Most likely the answer is that it is a governmental plan. For a start on answering your question, see:

ERISA section 3(32):

"The term "governmental plan" means a plan established or maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. . . . ."

IRC section 414(d):

"For purposes of this part, the term "governmental plan" means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. . . . ."

Proposed Treasury Regulation section 1.414(d)-1 and the discussion in the preamble, at 76 Federal Register 69172 (11/8/11) and 76 Federal Register 76633 (12/8/11), dealing with pension plans.