Proposed Revision of Annual Information Return/Reports
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Notice of proposed forms revisions.
RIN Number: "RIN 1210-AB51"
Citation: "76 FR 76252"
"Notices"
SUMMARY: This document contains proposed revisions to the Form 5500 Annual Return/Report filed by administrators of employee benefit plans. The proposed revisions are intended to enhance the
DATES: Written comments on the proposed regulations should be submitted to the
FOR FURTHER INFORMATION CONTACT:
ADDRESSES: Written comments may be submitted to the address specified below. All comments will be made available to the public. Warning: Do not include any personally identifiable information (such as name, address, or other contact information) or confidential business information that you do not want publicly disclosed. All comments may be posted on the Internet and can be retrieved by most Internet search engines. Comments may be submitted anonymously.
Comments may be submitted to the
* Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
* Email: [email protected].
* Mail or Hand Delivery:
Comments received by the
SUPPLEMENTARY INFORMATION: Under Titles I and IV of ERISA, and the Internal Revenue Code (Code), as amended, and regulations issued thereunder, pension and welfare benefit plans are generally required to file an annual report concerning, among other things, the financial condition and operation of the plans. Filing the Form 5500 Annual Return/Report of Employee Benefit Plan (Form 5500 Annual Return/Report), including any required attachments and schedules, generally satisfies the annual reporting requirements. The Form 5500 Annual Return/Report is the principal source of information and data concerning the operations, funding and investments of pension and welfare benefit plans. The Form 5500 Annual Return/Report constitutes an integral part of the enforcement, research and policy development programs of the
In addition to filing the Form 5500 Annual Return/Report, certain employee welfare benefit plans that are multiple employer welfare arrangements (MEWAs), as defined in section 3(40) of ERISA, are also subject to the reporting requirements under
II. Multiple Employer Welfare Arrangements
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) (Pub. L. 104-191, 110
On
FOOTNOTE 1 In the preamble to the 2000 interim final rule, the Department explained "[a]n important reason for requiring these groups to file is that the administrator of a
Although ERISA sections 505 and 734 provided the Secretary with the authority to require plan MEWAs to comply with the Form M-1 reporting requirements of
FOOTNOTE 2 Pursuant to ERISA section 502(c)(5), a civil penalty of up to
III. Discussion of the Proposed Revisions
1. Proposed Regulatory Amendments
The Department is simultaneously publishing a Notice of Proposed Rulemaking in today's
2. Plan MEWA Filing Requirement
Section 2520.104-20 and the instructions for the Form 5500 and Form 5500-SF provide for exemption from certain reporting and disclosure requirements under Title I of ERISA, including the requirement to file Form 5500 Annual Return/Report, for unfunded, fully insured, or combination unfunded/fully insured welfare plans that cover fewer than 100 participants. Under the proposed amendments to
FOOTNOTE 3 The Form 5500-SF does not include specific Schedule A insurance information, and the Department believes that plan MEWAs subject to this proposal that claim to provide insured benefits should be required to complete the Schedule A so that enforcement officials and the public have information about the insurance policy and insurance company through which the
As discussed in the Paperwork Reduction Act statement, below, the Department believes that the number of plan MEWAs affected by the proposed removal of the exemption under
Moreover, the burden of preparing and filing the Form 5500 Annual Return/Report for the few small unfunded/fully insured plan MEWAs affected by the proposal would be minimized because, in addition to being eligible for the simplified annual reporting requirements for small welfare plans provided under
3. Form 5500--New MEWA Information
Under the Notice of Proposed Rulemaking, content of the annual report under
IV. Findings on the Revised Form 5500 Annual Return/Report as a Limited Exemption and Simplified Reporting
Section 104(a)(2)(A) of ERISA authorizes the Secretary to prescribe by regulation simplified reporting for pension plans that cover fewer than 100 participants. Section 104(a)(3) of ERISA authorizes the Secretary to exempt any welfare plan from all or part of the reporting and disclosure requirements of Title I of ERISA or to provide simplified reporting and disclosure if the Secretary finds that such requirements are inappropriate as applied to such plans. Section 110 of ERISA permits the Secretary to prescribe for pension plans alternative methods of complying with any of the reporting and disclosure requirements if the Secretary finds that: (1) The use of the alternative method is consistent with the purposes of Title I of ERISA, provides adequate disclosure to plan participants and beneficiaries, and provides adequate reporting to the Secretary; (2) the application of the statutory reporting and disclosure requirements would increase costs to the plan or impose unreasonable administrative burdens with respect to the operation of the plan; and (3) the application of the statutory reporting and disclosure requirements would be adverse to the interests of plan participants in the aggregate. For purposes of Title I of ERISA, the filing of a completed Form 5500 Annual Return/Report, including the filing by eligible plans of the Form 5500-SF, in accordance with the instructions and related regulations, generally would constitute compliance with the simplified report, limited exemption and/or alternative method of compliance in
In revising the Form 5500 Annual Return/Report and making the amendments to the Department's annual reporting regulations, the Department has attempted to balance the needs of participants and beneficiaries and the Department to obtain information necessary to protect ERISA rights and interests with the costs attendant with the reporting of information to the federal government. The Department finds under sections 104(a)(2)(A) and 104(a)(3) of ERISA that the use of the Form 5500 Annual Return/Report, with the proposed new Form M-1 compliance questions, is consistent with the purposes of Title I of ERISA and provides adequate disclosure to participants and beneficiaries and adequate reporting to the Secretary.
The use of the Form 5500 Annual Return/Report, including the proposed new Form M-1 compliance questions, will relieve plan MEWAs from increased costs and unreasonable administrative burdens by providing a standardized format that facilitates reporting, eliminates duplicative reporting requirements, and simplifies the content of the annual report in general. Taking into account the above, the Department has determined that the proposed revisions to the Form 5500 Annual Return/Report are necessary and appropriate to carry out the provisions of Title I of ERISA. The proposed revised Form 5500 Annual Return/Report provides for the reporting and disclosure of financial and other plan information described in section 103 of ERISA in a uniform, efficient, and understandable manner, thereby facilitating the disclosure of such information to plan participants and beneficiaries.
V. Paperwork Reduction Act Statement
According to the Paperwork Reduction Act of 1995 (Pub. L. 104-13) (PRA), no persons are required to respond to a collection of information unless such collection displays a valid OMB control number. The Department notes that a Federal agency cannot conduct or sponsor a collection of information unless it is approved by the
The Department has filed a revision with OMB regarding the impact this notice would have on the information collection request titled "Form 5500, Annual Return/Report of Employee Benefit Plan," which is approved by OMB under OMB Control Number 1210-0110 and currently scheduled to expire on
The proposed rule also would require all plan MEWAs subject to the Form M-1 requirements to file the Form 5500 Annual Return/Report, regardless of the plan size. The limited exemption for certain small welfare plans under
Appendix A--Proposed Changes to Existing Form 5500--New Part III Added
BILLING CODE 4510-29-P
See Illustration in Original Document.
Appendix B--Proposed Changes to Form 5500 Instructions
The proposed changes to the instructions to the Form 5500 are as follows:
See Illustration in Original Document.
See Illustration in Original Document.
See Illustration in Original Document.
Appendix C--Proposed Changes to Existing Form 5500-SF Instructions
General Changes
The instructions to the Form 5500-SF will be updated to clarify that plan MEWAs subject to Form M-1 filing requirements are not eligible to file the Form 5500-SF and must file the Form 5500, with all required schedules and attachments. The proposed changes are as follows:
See Illustration in Original Document.
Signed at
Assistant Secretary,
[FR Doc. 2011-30919 Filed 12-5-11;
BILLING CODE 4510-29-C
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