Form 5500…Changes Are Fast
Approaching. Be Prepared.
Presented by
Patricia A. Stahm, QKA
CBIZ Actuarial & Benefit Consultants
What Will We Cover Today?
• Which plans need to file Form 5500?
• What schedules are included with the filing?
• How have the schedules changed from last year?
• Which plans can file new Form 5500-SF?
• What is the new electronic filing process?
Which Plans Need to File Form 5500?
• Pension benefit plans covered by ERISA:
– 401(k), profit sharing, defined benefit, money
purchase, stock bonus, and ESOPs
– 403(b) plan subject to ERISA requirements
– SIMPLE 401(k) plans
Which Plans Need to File Form 5500?
• Welfare benefit plans covered by ERISA:
– Plans with more than 100 covered employees,
regardless of how benefits are paid
– Plans that pay benefits from a trust, regardless
of how many employees are covered
Which Plans Do Not Need to File Form 5500?
• Pension benefit plans such as:
– Unfunded excess benefit plans
– 403(b) plans not covered by ERISA
– SIMPLE IRAs
– Non-electing church plans
– IRAs
– Governmental plans
Which Plans Do Not Need to File Form 5500?
• Welfare benefit plans:
– Covering less than 100 employees that are:
•Unfunded (benefits are paid from employer assets)
•Fully insured (benefits are paid through insurance
contracts or policies with premiums paid by either
employer, employees or combination)
•Combination of unfunded and fully insured
Delinquent Filer Voluntary Compliance Program
• If the Department of Labor finds you first:
– Department of Labor penalties - $30,000 per year
– Internal Revenue Service penalties - $25,000 per year
Delinquent Filer Voluntary Compliance Program
• If you voluntarily file first:
– $750 per year for small plan (capped at $1,500)
– $2,000 per year for large plan (capped at $4,000)
Delinquent Filer Voluntary Compliance Program
• How do you file?
– File full 5500 filing electronically
– Send copy of 5500 to Charlotte, NC with penalty
payment or make payment electronically on DOL
website
What Schedules Are Included With the Filing?
• Determined by plan category
– Small plan – less than 100 participants on the
first day of the plan year
– Large plan – 100 or more participants on the
first day of the plan year
– 80-120 rule
“All” Plan Schedules
• Form 5500 – the “transmittal letter”
• Schedule A – plans with insurance
• Schedule SB/MB – defined benefit plans
• Schedule D – plans participating in DFE-type
investments (DFE stands for Direct Filing Entity)
“All” Plan Schedules
• Schedule R – plans with required funding and/or
distribution activity and/or adoption of
amendments affecting defined benefit pension
values and/or ESOP
• Schedule SSA – reports participants with deferred
vested benefits to the Social Security
Administration
Small Plan Schedules
• Schedule I – limited reporting of financial
information and plan activity
– Attachment for schedule of delinquent contributions
Large Plan Schedules
• Schedule C – used to report fees paid to service
providers and termination of accountant and/or
actuary
Large Plan Schedules
• Schedule H – detailed reporting of financial
information and plan activity
–
–
–
–
Attachment for delinquent contributions
Attachment for assets held for investment purposes
Attachment for assets held and disposed of within year
Attachment for reportable transactions
• Accountant’s Report – results of independent
audit of plan activity
How Have the Schedules Changed?
• Schedule C – significant expansion of disclosure of
fees focusing on indirect compensation received
by service providers
• Schedule E – eliminated entirely; limited
questions moved to Schedule R
How Have the Schedules Changed?
• Schedule I – new requirements for reporting late
deposit of contributions and blackout periods; new
categories for fees paid by plan
• Schedule H – same additions as listed for
Schedule I; mutual fund dividend income now
reported separately
How Have the Schedules Changed?
• Schedule R – addition of ESOP questions; addition
of questions for multiemployer defined benefit
plans
• Schedule SSA - no longer filed with the 5500;
awaiting new Form 8955-SSA to file directly with
IRS
– Not yet available so may have to file an extension just
for Form 8955-SSA
Changes for 403(b) Plans
• If subject to ERISA, only limited reporting was
previously required
• Effective with plan years beginning in 2009, full
reporting is required, same as all other retirement
plans
• Includes audit requirement for large 403(b) plans
What’s the New Form 5500-SF?
• To be eligible:
– Less than 100 participants on first day of plan year
– Exempt from audit requirement (without enhanced
bond)
– 100% “eligible plan assets”
– No employer securities
– Not a multiemployer plan
What Are “Eligible Plan Assets”?
• 100% invested in certain secure, east to value assets such as:
– Mutual funds
– Investment contracts with insurance companies and
banks valued at least annually
– Publicly traded securities held by a registered broker
dealer
– Cash and cash equivalents
– Plan loans to participants
What’s the Electronic Filing Process?
• ERISA Filing Acceptance System aka EFAST2
– DOL website
– Third party vendor software used to generate
5500 and schedules (Relius, Datair, ACS, etc.)
•Electronically signed 5500 submitted by software to
EFAST2 for processing
What’s the Electronic Filing Process?
• Required for plan years beginning in 2009
• Also required for prior years’ returns that are being
amended or filed under Delinquent Filer Voluntary
Compliance Program
What’s the Electronic Filing Process?
• Steps for registering
– Obtain PIN and user ID from DOL website
(www.dol.gov/ebsa)
– Must have accessible e-mail address to
complete process
What’s the Electronic Filing Process?
• Possible user types
– Filing author
– Filing signer
– Schedule author
– Transmitter
What’s the Electronic Filing Process?
• Notes regarding PIN
– PIN is not to be shared with anyone else (such
as a TPA or recordkeeper)
– Same PIN can be used to sign multiple returns,
including those of different companies
– Keep PIN in safe place – if lost, can only be
replaced by calling the DOL
What’s the Electronic Filing Process?
• Schedules/attachments submitted to DOL in pdf
format:
–
–
–
–
Schedule SB/MB (includes actuaries wet signature)
Attachments to Schedules SB/MB
Audit report (includes wet signature and letterhead)
Attachments to Schedule I or Schedule H
What’s the Electronic Filing Process?
• When the filing is ready
– Typically notified by e-mail that 5500 is ready
to be signed
– Signer enters PIN, user ID and name
– Filing is submitted to DOL for processing either
by signer or by vendor
What’s the Electronic Filing Process?
• Filing status messages – the bad ones:
– Unprocessable submission – can’t open files
– Processable submission – opened but not determined if
acceptable
– Processing – reading and determining if acceptable
– Filing unprocessable – could not be read
These filings are not received!!
What’s the Electronic Filing Process?
• Filing status messages – the good ones:
– Filing stopped – read but critical information is missing
(further action required)
– Filing error – found critical errors (further action
required)
– Filing received – no errors
These filings are received and can only be changed by
amending the filing!!
What’s the Electronic Filing Process?
• Plan sponsor must still keep a signed paper copy
of the filing with the plan records
• Summary Annual Report must still be distributed
to participants
What’s the Electronic Filing Process?
• When to file
– First deadline is 7 months after year end
– May be extended:
•File Form 5558 prior to 7 month deadline – gain 2
½ additional months to file
•Use sponsor’s tax return extension – gain 1 month to
2 ½ months depending on entity type
What’s the Electronic Filing Process?
• Form 5558 still filed via paper copy; not included with
Form 5500 filing
• Deadline is midnight in the time zone of the plan
administrator (based on address on Form 5500)
• If problems, print error messages, include as an
attachment and re-submit filing
– May be treated by DOL as timely based on facts and
circumstances
What’s the Electronic Filing Process?
• Some exceptions to filing deadline:
– If deadline falls on Saturday, Sunday or federal
holiday, filing may be submitted on next
business day
– DOL provides additional extensions based on
extenuating circumstances such as natural
disasters
What’s the Electronic Filing Process?
• Filings will be available for public display within 1
day (DOL expectation!)
• Amended filings previously only required the
schedule or attachment being amended
• Now must submit entire filing so that public
display is complete
Questions?
Pattie Stahm
CBIZ Actuarial & Benefit Consultants
(602) 277-2371 ext. 6632
pstahm@cbiz.com
Oscar Diaz
CBIZ Benefits and Insurance Services
(520) 321-7511
odiaz@cbiz.com