Are Self-Insured Medical Plans Required to Maintain a Trust?

[Guest M. Salsbury]

I have what is probably as fairly basic question that does not appear to be adequately addressed by the commentary that I have read: Does the DOL require a self-insured medical plan to maintain a trust where (i) premiums for coverage under the plan are paid through a 125 plan and (ii) from time to time the plan receives after-tax contributions for COBRA and retiree coverage. Benefits under the plan are paid from the employer's general assets and the participant after-tax contributions are paid by check to the employer.

I have looked at ERISA Tech. Release 92-01 and the preable to the plan assets regulations and am confused as to whether DOL's nonenforcement policy extends to self-insured medical plans, particulatly where the plan receives after-tax contributions for COBRA and retiree coverage.

The plan covers well more than 100 participants

Any help would be appreciated.[Edited by M. Salsbury on 09-20-2000 at 10:59 AM]

[Guest]

How many participants are covered by the Plan?

It is my understanding that the nonenforcement policy of ERISA Tech Rel 92-01 that it only applies to plans with less than 100 paticipants. IF the plan covers more then the plan asset regs would require a Trust.