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DOL Releases Proposal to Revamp Form 5500

The Labor Department wants the information form that private-sector employee benefit plans file each year to have more information – and to be more “mineable.”

The IRS and PBGC are looking for public comments on proposed revisions that the agencies agree will “modernize and improve the Form 5500 Annual Return/ Report.” The agencies would like the changes to be in place for the 2019 plan year filings. Source: Napa-net.org

4  Motivations Behind Proposed 5500 Revisions: Form 5500

 

Modernize Financial Reporting

“The proposed updates especially focus on improving reporting regarding alternative investments, hard-to-value assets, and investments through collective investment vehicles. The proposed changes are designed to foster ongoing monitoring of employee benefit plans by employers, plan fiduciaries, and participants and beneficiaries, and improve the ability of the Agencies to fulfill their statutory oversight roles.”

Enhance Data Mineability

“This conversion would include the schedules of assets held for investment purposes. The proposed changes would enable private sector data users to develop more individualized tools for employers to evaluate their retirement plans and for employees to manage their retirement savings.”

Improve Service Provider Fee Information

“The proposed updates are intended to provide a powerful tool for improved evaluation of service arrangements involving investments, recordkeeping, and other administrative services. The Schedule C reporting requirements for employee benefit plans would also more closely track the information that plan service providers are required to disclose to plan fiduciaries.”

Enhance Compliance with ERISA and the Code 

“The proposal would add selected new questions regarding plan operations, service provider relationships, and financial management of plans. These questions are intended to compel fiduciaries to evaluate plan compliance with important requirements under ERISA and the Code and to provide the Agencies with improved tools to focus oversight and enforcement resources.”

 

Request for Public Comments Instructions:  

The proposal will be published on July 21, 2016 and will invite public comments from interested persons. Comments are due no later than October 4, 2016. Public comments can be submitted electronically or by paper using the instructions below:

Email: e-ORI@dol.gov. Include RIN 1210-AB63 in the subject line of the message.

Mail: Office of Regulations and Interpretations, Employee Benefits Security Administration, Attn: RIN 1210-AB63; Annual Reporting and Disclosure, Room N- 5655, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC 20210.

See the Notice of Proposed Form Revisions for additional information. It’s a light read… only 777 pages long.

Form 5500

 

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