News Archive

DFVCP Basics and 2025 Updates: Form 5500 Penalty Relief Guide

"The DFVCP was introduced in 1995 in an effort to allow plan administrators to correct delinquent Form 5500 filings for a significantly lower cost than if the DOL discovered the non-compliance first.... The new rules expand the types of entities that can use the DFVCP beyond just employer plans filing the Form 5500. The DFVCP can now also be used by multiple employer welfare arrangements (MEWAs) and Entities Claiming Exception (ECEs)."  MORE >>

DOL Expands DFVCP to Include Form M-1: What Employers Need to Know

"This is welcome news because in the past, there was no procedure or relief for MEWAs to file a late Form M-1 under a voluntary compliance program. However, it is not uncommon for a health plan to be (or become) an 'inadvertent MEWA,' either because the various employers involved were related but not in the same controlled group or because of a change in their controlled group status, e.g. in an M&A transaction."  MORE >>

DOL Expands Delinquent Filer Voluntary Compliance Program to Include Form M-1 (PDF)

"Note that some references in the DFVC Program expansion notice could cause confusion -- for example, it mentions filing Form M-1 using EFAST, but Form M-1 is actually filed through its own Online Filing System. Similarly, the notice indicates that payment is to be made through 'gov.pay' rather than pay.gov. Fortunately, the information on the DFVC Program webpage seems to be more accurate."  MORE >>

DOL Limited Amnesty Program for Form 5500 Filings Expanded to Form M-1 Filings

"On December 31, the DOL announced ... that it is now expanding DFVC to the Form M-1, which is a required filing for multiple employer welfare arrangements (MEWAs), including such arrangements that are not group health plans but provide benefits that consist of medical care (non-plan MEWAs). Certain 'Entities Claiming Exemption' (ECEs) are also required to file an M-1 if they claim they are not a MEWA due to a statutory exemption for arrangements based on collective bargaining agreements -- DFVC is available for those entities as well."  MORE >>

DOL Expands DFVCP

"The types of entities eligible for the program [have] been expanded to include multiple employer welfare arrangements (MEWAs) and Entities Claiming Exception (ECEs) seeking to file a late Form M-1.... DOL is also updating the process for the assessment of the flat rate penalty for top hat and apprenticeship and training plans."  MORE >>

Text of EBSA Notice: Changes to Delinquent Filer Voluntary Compliance Program

"Following a review of the DFVC Program, as modified in 2002 and 2013, the Department has determined to expand the penalty relief to plan MEWAs, non-plan MEWAs, and ECEs who are required to file the Form M-1.... The Department, to encourage voluntary compliance with ERISA's reporting requirements, is extending to plan and non-plan MEWAs and ECEs that are required to file Form M-1 the same $750 maximum penalty amount currently available to small plans filing a late Form 5500, and to filers of apprenticeship and training plans and top hat plans. In addition, top hat and apprenticeship plans will no longer be directed to the DFVC payment calculator. All plans eligible to pay a flat $750 fee will follow a link to a gov.pay site.... The DFVC Program described herein shall be effective December 19, 2025."  MORE >>

DOL Sues Missouri Bankers Benefit Plan

"Acting Secretary of Labor Julie Su targeted the trustees for the Missouri Bankers Association Voluntary Employees Beneficiary Association Plan and its third-party administrator, alleging the trustees for the welfare benefits plan violated their fiduciary duties under [ERISA]." [Su v. Missouri Bankers Association Inc., No. 23-4121 (W.D. Mo. complaint filed Jun. 13, 2023)]

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MEWAs and Affiliated Service Groups

"When considering funding options for a group of employers there is a hierarchy of questions to consider: [1] Does the group meet controlled group definition? ... [2] If group does not meet controlled group definition, they are a MEWA. If so: [a] Is there less than 25% common ownership? ... [b] What state law rules apply? [c] Does the plan have to register? [d] If the plan is self-insured, can it even function in that state? [4] Does the group meet affiliated service group rules?"  MORE >>

Text of Draft IRS Publication 598: Tax on Unrelated Business Income of Exempt Organizations (PDF)

23 pages. "What's New: [1] Mandatory electronic filing.... [2] Final regulations issued.... [3] Form 990-T has been redesigned for tax year 2020.... [4] Organizations with more than one unrelated trade or business must compute unrelated business taxable income (UBTI), including for the purpose of determining any net operating loss deduction, separately with respect to each such trade or business.... [5] Retroactive repeal of section 512(a)(7)." [Form dated Mar. 22, 2021; draft dated Mar. 25, 2021]  MORE >>

Leasing Healthcare Employees? Don't Overlook the Benefits Traps, Part 2

"In the context of employee leasing, a self-funded group health plan is most likely to be deemed a MEWA if the employees are not respected as common law employees of the lessor. While the facts and circumstances of the arrangement are most likely to drive the determination on this point, the parties to the arrangement should ensure that the agreement clearly reflects the intent that the lessor be treated as the common law employer of the leased employees."

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10 Tips for Filing Form M-1 for Association Health Plans and Other MEWAs That Provide Medical Benefits (PDF)

"[N]o one should be marketing, operating, or administering a MEWA that offers medical care benefits, unless it has filed an M-1. If you learn of such a filing failure, please notify [EBSA] immediately and exercise extreme caution before enrolling or participating in the arrangement.... Any business or individual considering enrolling in coverage through an AHP can visit the Department's webpage and use the Department's electronic Form M-1 search tool ... to determine whether the AHP has appropriately registered with the Department and made any other required M-1 filings.... A MEWA that offers medical benefits [including a newly created association health plan] must file a Form M-1 at least 30 days before engaging in any activity including, but not limited to, marketing, soliciting, providing, or offering to provide medical care benefits to a participating employer or employees, including working owners."

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DOL Releases 2018 Form M-1 for Use by Association Health Plans and Other MEWAs

"Since April 11, 2000, MEWAs that provide medical coverage, including AHPs, have been required to file a Form M-1 with the Department. On June 21, 2018, the Department published a rule that allows more groups and associations to form AHPs and also allows working owners without other employees (including sole proprietors) to join AHPs and receive health coverage for themselves and their families. AHPs established pursuant to this new rule constitute MEWAs and, as such, are required to file the Form M-1.... All MEWAs that provide medical benefits, including AHPs that intend to begin operating under the new rule, are required to file an initial registration Form M-1 at least 30 days before engaging in any activity."

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Text of 2018 DOL Form M-1 for Use by Association Health Plans and Other MEWAs (PDF)

"The Form M-1 is used to report information concerning a multiple employer welfare arrangement (MEWA) that provides benefits consisting of medical care ... and any entity claiming exception (ECE). Reporting is required pursuant to ERISA sections 101(g), 104(a), 505 and 734 of [ERISA]." [Editor's note: Form M-1 is filed electronically.]

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Text of DOL Advisory Opinion 2017-02AC: Group of Employers for Purposes of Multiple Employer Plan or MEWA

Question addressed: [1] Whether a sub-group of employer members of a trade association could constitute a 'group or association of employers' within the meaning of ERISA section 3(5) capable of sponsoring a multiple employer plan; [2] Whether a group health plan proposed by the sub-group would constitute a multiple employer welfare arrangement within the meaning of ERISA section 3(40).  MORE >>

Reminder: ACA's Out-of-Pocket Limits Differ from HSA-Qualified High-Deductible Health Plans, Starting in 2015

"Under the ACA, HHS is required to use a different methodology for calculating any annual adjustments than the IRS uses for HDHPs. Therefore, starting in 2015, the two limits will begin to differ ... [In] addition to the HDHP limits being lower than the ACA limits in 2015, expenses will accumulate toward the HDHP limit more quickly because the HDHP limits apply to all covered in-network benefits, not just essential health benefits."  MORE >>

MEWA Reminder: Annual Form M-1 Filings Due March 1

"In 2013, the DOL made significant changes to the Form M-1 and converted the filing process to electronic only. Because of these changes, the deadline for filing the 2012 Form M-1 was delayed until May 1, 2013. However, no delayed filing deadline applies for the 2013 Form M-1, which is due March 1, 2014."

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Employers Sponsoring MEWA Plans Should Beware of ACA Non-Compliance Risks

"What happens if your employer-sponsored group health plan renews on or after January 1, 2014, but the plan that is being renewed is not compliant with healthcare reform? This situation can arise if the employer is purchasing a plan from a MEWA (multiple employer welfare arrangement) and the MEWA is a non-calendar year plan that renews after the employer renews its group health plan. The employer renewing earlier in 2014 than the MEWA will be purchasing a health plan from the MEWA's 2013-2014 plans, which are likely not compliant with certain provisions of the ACA. The employer would then have that non-compliant plan in place for its entire 2014-2015 plan year[.]"

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DOL Issues Final Rules on MEWA Reporting and Enforcement

"MEWAs can provide employers with an effective, affordable way to make medical coverage available to their employees. However, historical gaps in enforcement and regulation of MEWAs have often given rise to abuses and fraud perpetrated by MEWA promoters and operators, particularly those associated with unlicensed entities. In extreme cases, MEWAs have been drained of their resources and left unable to pay benefit claims. Both sets of final rules are intended to help combat such abuses."  MORE >>

DOL Issues Final Rules on Multiple Employer Welfare Arrangements

"[A]ll employee welfare plans that file a Form M-1 must also file a Form 5500, even if the plan would otherwise be exempt, to demonstrate the plan's compliance with the Form M-1 filing requirement. Failure to answer the Form M-1 compliance question will cause the Form 5500 to be rejected as incomplete, which may subject the filer to civil penalties."

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MEWA Form M-1 and Final Regs Released

"MEWAs are still required to certify compliance with part 7 of ERISA by using the 36-page checklist/questionnaire that needs to be completed as part of the form. As with previous years, there are penalties associated with incomplete or incorrect forms. Additionally, all plan administrators must now file the Form M-1 electronically using the online filing system."  MORE >>

New Enforcement and Reporting Rules Applicable to Multiple Employer Welfare Arrangements (MEWAs)

"Previously, the DOL's primary enforcement tool against fraudulent and abusive MEWAs was court-ordered injunctive relief. Now, ERISA permits the DOL to issue cease and desist orders, without prior notice or a hearing, when it appears that a MEWA has engaged in [certain] conduct[.]"  MORE >>

DOL Asserts New Power to Seize Assets of Fraudulent Health Care Pools

"The Labor Department has prosecuted abuse of the insurance pools in the past, but the new rule would cut through the red tape associated with freezing assets and issuing a 'cease and desist order' to a deceptive insurance promoter. The rules allow the secretary of Labor to assess from a fraudulent program if there is 'probable cause' that the plan is in a 'financially hazardous condition'."  MORE >>

An Analysis of 2007-2009 Filings of Form M-1 (Report for Multiple Employer Welfare Arrangements and Certain Entities Claiming Exception) (PDF)

"[P]rimary findings include: [1] The annual number of MEWAs/ECEs that filed a Form M-1 was between 450 and 500 in 2007-2009. [2] MEWAs/ECEs tend to cover many participants.... [3] Health benefits may be fully insured through an external insurer or self-insured by the MEWA/ECE.... [4] More than one-half of MEWAs/ECEs that filed a matched Form M-1 provided dental, life, or vision benefits in addition to health benefits in 2009.... [5] Virtually no MEWA/ECE reported being involved in a litigation or regulatory action in 2007-2009."

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Form M-1 Online Filing System

"With respect to all 2012 filings, MEWAs and ECEs should use this electronic Form M-1 for filing purposes."  MORE >>

EBSA Fact Sheet: Final ACA Regs Related to Multiple Employer Welfare Arrangements (MEWAs) (PDF)

2 pages. "The final rules contain the following components: [1] Cease and Desist Orders ... [2] Administrative Hearings ... [3] Summary Seizure Orders ... [4] MEWA Reporting/Registration ... [5] Changes to the Form M-1 ... [6] Changes to the Form 5500[.]"

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