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Annual
Report Requirements for Welfare Benefit Plans
Welfare
benefit plans are generally required to file annual reports on Form
5500, the same form that is used for pension plan annual reports.
An exception applies to welfare benefit plans (that is, plans
providing medical, dental, disability and life insurance coverage)
that (i) have fewer than 100 participants as of the beginning of the
plan year and (ii) are unfunded, fully insured or a combination of
unfunded and insured. Unfunded
plans are plans that pay benefits directly from the general assets
of the employer without any trust or separately maintained fund that
holds or acts as a conduit for plan assets. Any
plan that receives employee contributions is not an "unfunded"
plan and, unless fully insured, will be required to file an annual
report regardless of the number of participants. Generally
speaking, a report of an independent qualified public accountant
will be required as to any welfare benefit plan filing an annual
report unless the plan is unfunded, fully insured or a combination
of unfunded and insured. If the accountant’s report is
required, the annual report filing will be deemed incomplete if it
is not included. An incomplete annual report will not be
accepted for filing and late filing penalties may apply until the
annual report is submitted along with the report of an independent
accountant.
Andrew
S. Williams
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