Scott A. Davis Posted April 16, 2022 Posted April 16, 2022 For Welfare Benefit plans normally have a form 5500 filing exception (if not a MEWA or Certain Entities Claiming Exception (ECEs), on page 3 of the instructions, bottom right 1. A welfare benefit plan that covered fewer than 100 participants as of the beginning of the plan year and is unfunded, fully insured, or a combination of insured and unfunded. Some interpret the lines 5 & 6 instructions (page 18 bottom right, bottom link) to include active eligible employees (most full-time employees are eligible at the beginning of the plan year, during Open Enrollment, while new hires can also be elgible as of the beginning of the plan year) to those participating. See the bolded below and let me know if you also believe all active eligible employees are to be counted? The description of ‘‘participant’’ in the instructions below is only for purposes of these lines. An individual becomes a participant covered under an employee welfare benefit plan on the earliest of: the date designated by the plan as the date on which the individual begins participation in the plan; the date on which the individual becomes eligible under theplan for a benefit subject only to occurrence of the contingencyfor which the benefit is provided; or the date on which the individual makes a contribution to the plan, whether voluntary or mandatory. See 29 CFR 2510.3-3(d)(1). This includes former employees who are receiving group health continuation coverage benefits pursuant to Part 6 of ERISA and who are covered by the employee welfare benefit plan. Covered dependents are not counted as participants. A child who is an “alternate recipient” entitled to health benefits under a qualified medical child support order (QMCSO) should not be counted as a participant for lines 5 and 6. An individual is not a participant covered under an employee welfare plan on the earliest date on which the individual (a) is ineligible to receive any benefit under the plan even if the contingency for which such benefit is provided should occur, and (b) is not designated by the plan as a participant. See 29 CFR 2510.3- 3(d)(2). https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2021-instructions.pdf Appreciate it if you can answer this question, from prior experience as 2020 and 2019 instructions are similarly stated. Thanks. Scott
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