Media Release

Release Date: 06/22/2000
Release Number: 00-32
Contact Name: Sharon Morrissey
Phone Number: 202.219.8921

Labor Department Answers Additional Questions About Form M-1 For Multiple Employer Welfare Arrangements

The U.S. Department of Labor’s Pension and Welfare Benefits Administration today expanded its question-and-answer guidance on the new Form M-1 annual report for multiple employer welfare arrangements (MEWAs), based on calls regarding failure to meet the filing deadline and on the scope of the reporting requirement.

Generally, MEWAs are arrangements that offer medical benefits to the employees of two or more employers or to their beneficiaries. Certain plans which are established or maintained under collective bargaining agreements, by a rural electric cooperative or by a rural telephone cooperative association are excluded from the MEWA definition.

In today’s announcement, PWBA is reconfirming its commitment to working with plan administrators to help them comply with this filing requirement. For filings due this year, PWBA has a “good faith safe harbor” and will not assess penalties in cases where there has been a good faith effort to comply with the filing requirement.

Secondly, new questions and answers address whether or not a filing is required this year in certain situations brought to the attention of PWBA by commenters. One example discusses a merger after which employees continue to be covered under the health plan of their former employer. Another example addresses the situation where a very small number of the participants in the plan are not employees of the employer sponsoring the health plan (for example, independent contractors, members of the board of directors, etc.).

PWBA published the Form M-1 annual report for MEWAs in the Feb. 11, 2000 Federal Register. Under the new reporting requirement, the one-page Form M-1 is generally required to be filed once a year. During this first year of filing M-1s, the form was due May 1, 2000, but administrators could request an automatic 60-day extension to July 1, 2000. The next filing would not be due until March 1, 2001, and on every March 1 thereafter.

Copies of the Form M-1, the booklet, “MEWAs: A Guide to Federal and State Regulation” as well as all of the frequently-asked questions, including today’s new responses, are available from PWBA’s publication hotline at 1-800-998-7542 and on the Internet at www.dol.gov/dol/pwba (click on “Newsroom” and then click on “What’s New”). Plan administrators also may contact the PWBA help desk at 202/219-8818 for assistance with technical questions or in completing the Form M-1.

In addition, PWBA is addressing the Form M-1 filing requirements as part of its Form 5500 educational outreach programs currently underway and sponsored in partnership with the International Foundation of Employee Benefit Plans and several state societies of Certified Public Accountants. Those events are also listed under the agency’s homepage.

U.S. Department of Labor news releases are accessible on the Internet. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the Central Office for Assistive Services and Technology. Please specify which news release when placing your request. Call 202.693.7773 or TTY 202.693.7775.