How do I know whether a plan is a 'new plan' or an 'amendment and restatement of an existing plan'?

There are a number of factors to consider when determining which option to select. In general, you may wish to select a "new plan" if all benefit plans are new; you want to establish a new plan to create a clean break from past plans and practices; or you want to split a plan when an employer provides different benefits to different classes of employees. Also, if previous Form 5500s have been filed for a plan and that plan is not a continuation of the current plan, you may wish to start with the next plan number that has not been used.

However, you may wish to treat this as an "amendment and restatement of an existing plan" with the same plan number if:

  • The Wrap document is being used to consolidate all benefit coverages into a single plan (e.g., adding life and dental coverage to a group health plan).
  • The provisions in the Wrap document are updated to comply with new laws and new agency requirements, or benefit plans or other information have been changed or replaced.
  • An employer wants to continue its current benefit program and use the Wrap document to verify that all types of coverage are contained in a single ERISA-covered plan with a single Wrap Plan Document. (This is often the case when a Form 5500 has previously been filed indicating that the employer has a single plan.)

Please consult with benefits counsel if you are unsure of which option applies to your plan.

Please Note: Wrap360 and its employees and officers are not permitted to offer legal advice. These FAQs are provided for general information purposes only. As the answers to specific questions may vary based on federal or state law, as well as on company documents for the issues in question, it would be prudent to consult knowledgeable benefits counsel for individualized guidance.