We are having a debate with a plan administrator about the amount of coverage there is for an employee benefit plan.

Scenario: Entire employee benefit plan is $818,000. There are 13 participants. The largest participant share is 35%. The amount on deposit at bank is $656,000. The plan administrator is telling us that the amount insured at the bank is $457,000, but I have figured it (based on FDIC information) to be $285,000 (I took $100,000 and divided it by the largest participant share 35%). From the spread sheet that the plan admin gave me, he is figuring that any participate who has over $100,000 is covered only for $100,000 and any participant that has less than $100,000 is just insured for the amount of their share held at the bank.

Who is right? Can anyone help me out?
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