8:00am – 5:00pm

Monday to Friday

1 Almaden Boulevard

Suite 750
San Jose, CA 95113

(408) 377-3441

8:00am – 5:00pm

Monday to Friday

1 Almaden Boulevard

Suite 750
San Jose, CA 95113

(408) 377-3441

Frequently Asked Questions

What does Trust Management Services do?

We are the trustee for Health and Welfare Trusts. We are responsible and have custody of the cash and investments while a third party administers the Health and Welfare benefit plan.

What is Trust Management Services responsible for?

We are the directed trustee. We setup the trust bank account(s).  We deposit funds to the bank accounts; pay obligations of the Health & Welfare Plan and transfers between different types of accounts.  We prepare the bank reconciliations and all the cash basis accounting for the trust.  We prepare and file the Form 5500 with the Department of Labor (DOL).  For Health & Welfare Plans that are required to file a Form 5500 for a large plan that requires an audit to be attached, TMS will coordinate work with the auditors.

What is a Form 5500 and why do Employee Benefit Plans have to file one?

Companies must file Form 5500, Annual Return/Report of Employee Benefit Plan with the DOL to comply with the reporting and disclosure requirements of the Employee Retirement Income Security Act (ERISA). Most company sponsored Employee Benefit Plans are required to file a Form 5500. The form provides information about retirement and benefit programs companies offer to employees. Companies with 100+ participants may also fall under audit requirements.

What is ERISA?

The Employee Retirement Income Security Act of 1974, or ERISA, was designed to protect the pension and welfare benefits of most American workers.

What is a Health and Welfare Trust?

Health and Welfare Trust are utilized with a funded Health & Welfare Plan to provide health-related benefits to workers and their families.

Are Health and Welfare Trusts irrevocable?

Yes, meaning the funds cannot revert to the employer or grantor.

When closing out a Health and Welfare trust what are the most common avenues to do so?

As the funds cannot revert to the employer:

  1. Transfer funds to another health and welfare trust
  2. Purchase a terminal life benefit for the plan participants
  3. Reimbursement to the employer for medical premiums paid for a similar group of employees.  If there are SCA contracts and the employer covers health insurance, the employer can give a copy of the invoice and be reimbursed.
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