Which statement correctly describes a beneficiary in an employer benefit plan?

• A. A beneficiary is the employer who funds the plan.
• B. A beneficiary is any individual that is covered by the plan, also referred to as a member.
• C. A beneficiary is a vendor who provides services.
• D. A beneficiary is a government regulator.

Answer: (B)

In employer benefit plans, a beneficiary is the person who is eligible to receive the plan’s benefits—the individual covered by the plan, also called a member or participant. The employer serves as the plan sponsor and funds the plan, but they are not the beneficiary. A vendor is simply a service provider to the plan, and a government regulator is an authority overseeing compliance. For example, an employee and their dependent enrolling in a health plan are beneficiaries, because they are the ones who can access and receive the plan’s benefits.