Thursday, May 19, 2022
News for Retirees

Businesses Suggest Intensive Kind 5500 Amendments – Employment and HR

The Division of Labor (“DOL”), Division of the Treasury (the “Treasury”), and Pension Profit Warranty Company (“PBGC”) (collectively, the “Businesses”)…

By Staff , in Investments , at September 23, 2021

The Division of Labor (“DOL”), Division of the
Treasury (the “Treasury”), and Pension Profit Warranty
Company (“PBGC”) (collectively, the
“Businesses”) just lately launched a discover of proposed revisions to the Kind 5500
Annual Return/Report of Worker Profit Plan (“Kind
5500”) filed for worker pension and welfare profit plans
below the Worker Retirement Revenue Security Act of 1974, as
amended (“ERISA”) and the Inner Income Code (the
“Code”). The package deal issued by the Businesses incorporates each
a discover of proposed revisions to the Varieties themselves in addition to a
discover of proposed regulatory adjustments to the relevant Kind 5500

The Proposed Guidelines are primarily supposed to implement
provisions of the Setting Each Group Up for Retirement
Enhancement Act of 2019 (“SECURE Act”). Nonetheless, the
businesses went a lot additional, proposing adjustments affecting outlined
profit plans, a number of employer plans (“MEPs”), pooled
employer plans (“PEPs”), and a number of employer welfare
preparations (“MEWAs”). Under, we focus on most of the
vital proposed adjustments to the Kind 5500 addressed within the
Proposed Guidelines. Feedback are because of the Businesses on or earlier than
November 1st.

I. Background

The Businesses developed the Kind 5500 and Kind 5500-SF, Quick
Kind Annual Return/Report of Small Worker Profit Plan
(“Kind 5500 SF”), to fulfill relevant reporting
necessities for worker pension and welfare profit plans below
ERISA and the Code. The Kind 5500 features as the first supply
of knowledge and information obtainable to the Businesses relating to the
operations, funding, and investments of the greater than 843,000
pension and welfare profit plans that file.1 Plan directors who fail to file the
required report when due may be topic to vital financial
civil penalties below each ERISA and the Code. At the moment, civil
penalties below ERISA can quantity to greater than $2,200 per day. In
addition, the SECURE Act elevated the penalties imposed below the
Code for failing to file an annual report for a retirement plan,
which may quantity to $250 per day, as much as a most of $150,000 per
annual report. The DOL, particularly, maintains a really lively
administrative program for the evaluation of Kind 5500-related
civil penalties.

In 2016, the Obama administration proposed a sweeping package deal of
adjustments to the Kind 5500 that may have dramatically rewritten the
Varieties. See 81 Fed. Reg. 47534 (July 21, 2016); 81 Fed.
Reg. 47496 (July 21, 2016). These adjustments had been controversial and
by no means finalized. Though the Proposed Guidelines are as intensive as
the 2016 proposed Kind 5500 adjustments, the Businesses have signaled
that additional Kind 5500 revisions are possible. Particularly, the
preamble to the Proposed Guidelines states that the DOL has added to its
regulatory agenda a brand new mission that can concentrate on broader
revisions to the Kind 5500 aimed toward modernizing the Varieties and
enhancing the Businesses’ information assortment actions by way of the
Kind 5500. Keep tuned for additional developments on this space.

II. Group of Plans / Outlined Contribution Teams

Part 202 of the SECURE Act directs the Secretary of the
Treasury and Secretary of Labor (the “Secretaries”) to
modify Kind 5500 to permit sure teams of outlined contribution
plans (“DCGs”) to file a single consolidated annual
report/return. For plans to be eligible for the DCG reporting
association, Part 202 of the SECURE Act requires that the plans
have to be particular person account plans or outlined contribution plans that
have the identical trustee as described in Part 403(a) of ERISA, the
identical a number of named fiduciaries below Part 402 of ERISA, the
identical plan administrator below Part 3(16)(A) of ERISA and Part
414(g) of the Code, the identical plan yr, and supply the identical
investments or funding choices for contributors and
beneficiaries (“the DCG Eligibility Necessities”).
According to the SECURE Act, the Proposed Guidelines would amend the
Kind 5500 to require plans to confirm that they meet the DCG
Eligibility Necessities with the intention to file a single, consolidated
annual report.

The Proposed Guidelines would modify the Kind 5500 directions to
present that the submitting necessities for giant pension plans and
direct submitting entities (reminiscent of grasp belief funding accounts,
collective trusts, pooled separate accounts, 103-12 funding
entities and group insurance coverage preparations, collectively
“DFEs”) usually would apply to DCGs. The directions
for Half I, DFE field, could be up to date to incorporate a code for DCGs.
Plans in a DCG reporting association would report particular person plan
degree info on the Schedule DCG, together with, amongst different
gadgets, the next info: (i) whether or not the plan is a single
employer plan, (ii) whether or not the plan is topic to the collective
bargaining course of, (iii) the title of the plan, (iv) plan sponsor
figuring out info, (v) monetary info (together with,
amongst different gadgets, the whole quantity of plan belongings and bills
involving administrative service suppliers and complete charges paid),
(vi) compliance questions, and (vii) questions for giant plans
overlaying 100 or extra contributors on the IQPA report and monetary

The Proposed Guidelines would additionally impose a number of necessities on
taking part plans in a DCG reporting association.

  • Plans should not maintain any employer securities and have to be
    invested 100% in sure “eligible plan belongings” (reminiscent of
    mutual funds, financial institution or insurance coverage firm issued contracts valued at
    least yearly, publicly traded securities held by a registered
    dealer, money and money equivalents and plan loans to contributors).
    These necessities additionally apply to plans eligible to file the 2-page
    Kind 5500-SF.

  • Every plan’s belongings have to be held in the identical belief, however the
    use of sub-trusts throughout the identical belief is permitted.

  • The Kind 5500 would require an IQPA audit report hooked up for
    every plan taking part within the DCG reporting association (except
    the plan is eligible for the waiver of the audit requirement below
    DOL laws).

  • A trust-level audit, and trust-level monetary statements,
    could be required along with an audit for every taking part

At current, plans which are exempt from the belief requirement
(reminiscent of 403(b) plans and sure insured plans) wouldn’t be
permitted to take part in DCG reporting preparations. In
addition, MEPs are barred from the consolidated DCG reporting
preparations below the Proposed Guidelines. The Businesses consider that
such an association as utilized to MEPs, which already file a single
Kind 5500 overlaying all taking part employers within the plan, may
“lead to an undesirable discount in transparency and
monetary accountability” and will add complexity and value
for such teams of plans. Nonetheless, as a result of the Businesses
“acknowledge such a rule is just not expressly set forth in Part
202 of the SECURE Act,” the Businesses solicit public feedback
on whether or not multiemployer plans and MEPs must be barred from DCG

Plans that embrace brokerage home windows would even be barred from
taking part in a DCG association. The Businesses requested for feedback
on whether or not such options must be permitted in a DCG association
and in addition solicited feedback on whether or not the DCG reporting choice
ought to exist for plans that use the identical custodial account or
insurance coverage coverage because the funding car for the plans.

The DCG consolidated reporting choice, in its present type, is
restricted and entails expense. The taking part plans are restricted
to investing 100% of their belongings in belongings which have a readily
obtainable worth (reminiscent of mutual funds and money equivalents) and will
not maintain employer securities or brokerage window options. In
addition to requiring every plan to have its personal audit (if the audit
requirement applies to the plan), the belief itself should additionally
obtain an audit. Due to this fact, it could make sense to file as a DCG
association solely after the plan has reached a sure threshold of
taking part employers. Furthermore, if the taking part plans have
fewer than 100 contributors with account balances, the plans will
usually be eligible for an audit waiver and to file the Kind
5500-SF. Consequently, a DCG association that features small plans
might decide it makes extra sense to file a Kind 5500-SF for every
taking part plan somewhat than file as a DCG association.


The Proposed Guidelines would add a brand new “Schedule MEP” to
the Kind 5500 that may require retirement MEPs to supply plan
particular info on an annual report together with, amongst different
gadgets, the kind of a number of employer pension plan (e.g.,
affiliation retirement plan, skilled employer group
(“PEO”), pooled employer plan, or different), the title of the
plan administrator, taking part employer info (together with
the EIN), and the share of complete contributions by every
taking part employer for the plan yr. The Proposed Guidelines add a
checkbox to the Kind 5500 on Half II, Line 10(a)(5) to point
{that a} Schedule MEP is hooked up to the report. The directions for
what constitutes a MEP would usually be left unchanged, however the
Proposed Guidelines would make conforming adjustments to incorporate references
to numerous MEP varieties, together with PEO-sponsored plans and PEPs.

Part 103(g) of ERISA requires a MEP to checklist on its annual
report the employers taking part within the MEP and to supply an excellent
religion estimate of the share of complete contributions made by
every taking part employer throughout a plan yr. Part 101 of the
SECURE Act amended Part 103(g) of ERISA to require that an
annual report for a MEP additionally embrace the combination account balances
for every taking part employer (i.e., the sum of the
account balances of the workers and beneficiaries for every
employer) within the MEP starting on January 1, 2021. The Schedule MEP
incorporates this requirement by together with a spot to fill within the
mixture account balances attributable to every taking part


Part 101 of the SECURE Act added ERISA Sections 3(43) and
3(44) to permit for a brand new and distinct sort of outlined contribution
pension plan known as a PEP, which is operated by a “pooled plan
supplier” (“PPP”). Not like different MEPs, a PEP permits
unrelated employers to take part within the plan with no frequent
curiosity (e.g., a typical commerce, line of enterprise or
business). To function a PEP, a PPP is required to file a
registration assertion (a “Kind PR”) with the Secretary
of Treasury, which asks for figuring out info such because the EIN
for the PPP, the id of any associates offering companies,
trustees, and the plan title of the PEP.

The SECURE Act’s amendments to ERISA require PEPs to file a
Kind 5500 that features all the identical taking part employer
info as mentioned above for MEPs (i.e., the
share of complete contributions made by every taking part
employer throughout a plan yr and the combination account balances
attributable to every taking part employer within the plan). As is
additionally the case with MEPs, PEPs would full and fix the newly
created Schedule MEP as a part of the Kind 5500. The Schedule MEP
features a “Half III” particularly for PEPs to supply
further PEP-specific info reminiscent of whether or not the PPP is in
compliance with the Kind PR necessities, whether or not affiliated
companies have been offered to the PPP, and whether or not the PPP has
acknowledged in writing that it’s a named fiduciary and plan
administrator of the plan.

The Proposed Guidelines additionally present the next revisions to the
Kind 5500 associated to the creation of PEPs:

  • Amend the Directions to the Kind 5500 to make express that
    PEPs should report the identical figuring out info (e.,
    EIN, recognized associates and different service suppliers and
    trustees) on the Kind 5500 as reported by the PPP on the Kind

  • Add belief inquiries to the Kind 5500 relating to the title of the
    trustee or custodian, the belief’s EIN, and the trustee or
    custodian’s phone quantity, which can “allow the
    businesses to extra effectively concentrate on compliance issues for
    retirement plan trusts, together with these for pooled employer

  • Amend the Directions to the Kind 5500 to state that PEPs and
    DCGs wouldn’t report funding belongings aggregated into grasp
    belief funding accounts, if relevant; and

  • The Proposed Guidelines would add breakout classes to Schedule H
    partly to replicate the necessity for transparency and improved reporting
    of charges and bills for service suppliers within the PEP and MEP
    context. Such classes would come with: “salaries and
    allowances,” “IQPA Audit charges,” “Recordkeeping
    and Different Accounting Charges,” “Financial institution or Belief Firm
    Trustee/Custodial Charges,” “Actuarial charges,”
    “Authorized charges,” “Valuation/appraisal charges”.

The Proposed Guidelines additionally solicit feedback on whether or not extra
tailor-made questions in Schedules C (Service Supplier Info)
and H of the Kind 5500 must be included to collect extra concrete
info on reporting charges and bills incurred by PEPs and
different MEPs. Such info may embrace how charges and bills
are allotted amongst taking part employers and amongst coated
contributors and beneficiaries. The Preamble to the Proposed Guidelines
gives that such feedback could be useful in furthering the
general objective of price transparency, which is especially vital
within the PEP and MEP context provided that “conventional service
suppliers find yourself appearing as plan sponsors and directors.”
The Businesses added that helpful feedback would come with
“ideas on how one can enhance reporting of direct and
oblique service supplier compensation.”

V. Simplified Reporting

Part 101(d) of the SECURE Act amended ERISA Part
104(a)(2)(A) to supply that the Secretary of Labor “might by
regulation prescribe simplified annual stories” for single
employer pension plans overlaying fewer than 100 contributors, or
MEPs with fewer than 1,000 contributors in complete, so long as every
taking part employer has fewer than 100 contributors.

Nonetheless, the Proposed Guidelines don’t handle simplified reporting.
Moderately the Proposed Guidelines solicit feedback on why simplified
reporting must be prolonged to MEPs with fewer than 1,000
contributors and what acceptable circumstances and limitations
“would guarantee transparency and accountability corresponding to
that for different giant retirement plans.”

Beneath the Proposed Guidelines, all MEPs could be required to file the
Kind 5500, even when they’d in any other case be eligible to file the
Kind 5500-SF. DOL famous that this method is in keeping with
(“much like”) the present rule for multiemployer plans
and the proposed rule for DCGs. DOL’s reasoning was that
uniform submitting necessities throughout all plans facilitate
“constant and knowledgeable oversight.”

Small MEPs (these with lower than 100 contributors as of the
starting of the plan yr) would, nevertheless, be eligible for the
identical simplified reporting necessities that apply to small pension
plans that at the moment file Varieties 5500. Which means small MEPs
would, below the Proposed Guidelines, file Schedule I: Monetary
Info – Small Plan somewhat than the longer and extra
detailed Schedule H: Monetary Info. Neither would small
MEPs be required to have an audit. Small MEPs would even be exempt
from submitting the Schedule C: Service Supplier Info and
Schedule G: Monetary Transaction Schedules.

VI. Modifications to the Schedule of Belongings Held for Funding

The Proposed Guidelines would amend the content material necessities for the
“Schedule of Belongings Held for Funding” and the
“Schedule of Belongings Held and Disposed of throughout the Plan
Yr” to require that these schedules be filed electronically
in a structured format in order that they’re data-minable. The preamble
to the Proposed Guidelines states that the change is “designed to
enhance the consistency, transparency, and value of knowledge
reported relating to plan investments.”

The proposal to make the schedules of belongings held for funding
functions uniform and digital was proposed by the Businesses in
2016 and is clearly a key objective for the Businesses. At the moment,
figuring out the investments held by a plan have to be performed manually
as a result of the funding schedules are usually not required to be hooked up in
any specific format. For instance, there is no such thing as a environment friendly methodology
for the DOL to determine all the ERISA plans that spend money on a
particular funding reminiscent of a collective funding belief, mutual
fund, or restricted partnership. DOL states within the preamble to the
Proposed Guidelines, that the Kind 5500 information helps DOL, the Inner
Income Service (“IRS”), and the PBGC “extra
successfully…and effectively present oversight, help with
compliance, and implement the provisions of ERISA and the Code”
and the Kind 5500 “is among the vital instruments the DOL makes use of
to hold out its duty to detect and examine [ERISA]
violations.” Standardizing an digital format for the
plan’s funding schedules will permit information aggregation and
evaluate, which may very well be used each by the DOL’s enforcement
division in addition to plaintiff’s attorneys.

VII. Funding for Outlined Profit Plans

The Proposed Guidelines comprise adjustments to the Schedules MB, SB, and
R, mentioned under. These adjustments are supposed to extend
transparency and supply PBGC with further info and information
to extra precisely mission outlined profit pension plans’ and
PBGC’s personal liabilities, in addition to assist PBGC conduct extra
efficient investigations. These adjustments would impression the 23,371
single-employer and 1,373 multiemployer outlined profit plans
coated by PBGC.

The proposed adjustments to Schedule MB embrace:

  • Withdrawal legal responsibility reporting. Line 3
    at the moment requires reporting of all employer and worker
    contributions to the plan, together with withdrawal legal responsibility funds
    and quantities. Beneath the Proposed Guidelines, the filer could be required
    to connect a withdrawal legal responsibility breakdown by date and whether or not a
    cost was a periodic cost or a lump sum.

  • Actuarial assumptions. In reporting varied
    actuarial assumptions, the filer could be required to report the
    rate of interest used to find out the current worth of vested
    advantages for withdrawal legal responsibility functions. Moreover, the
    questions referring to the expense load could be modified to,
    inter alia¸ require a filer to point whether or not the
    expense load is included in regular price and the way the quantity of the
    expense load is set.

  • Miscellaneous further info. The
    Proposed Guidelines would make adjustments to line 8 to require further
    details about the demographics, advantages, contributions, and
    withdrawal legal responsibility funds for giant plans (e., plans
    with 500 or extra contributors). For instance, filers could be
    required to supply 50-year advantages and contributions projections,
    and the common age and month-to-month profit for terminated vested and
    retired contributors.

  • Clarifying change. The Proposed Guidelines make
    adjustments to make clear the previously-confusing language in line 4f and
    corresponding directions relating to when plans which are in
    “crucial” or “crucial and declining” standing
    are projected to emerge from such standing or turn into bancrupt.

The proposed adjustments to Schedule SB embrace:

  • Demographics and Advantages. Beneath the Proposed
    Guidelines, single-employer plans with at the very least 500 contributors would
    be required to supply demographics and advantages info
    much like that required to be reported by PBGC-covered
    multiemployer plans. This info would come with 50-year
    projections of advantages damaged down by standing (e., lively,
    terminated vested, retiree) and a report of contributors’ and
    beneficiaries’ common age and month-to-month profit by standing.

  • ARPA elections. Half IX and corresponding
    directions could be revised to require reporting of an election
    below the American Rescue Plan Act of 2021 (“ARPA”)
    somewhat than the Pension Aid Act of 2010, which is not

The proposed change to Schedule R would require multiemployer
plans to not solely checklist employers that contributed greater than 5
% of the plan’s complete contributions for the plan yr,
but in addition the highest 10 highest contributing employers to the plan for
the plan yr, even when a prime contributor contributes lower than 5
% of the whole plan contributions.

Lastly, the Proposed Guidelines would modify the directions to
allow—however not require—sure attachments to the
Schedules MB and SB to be offered in a spreadsheet type somewhat
than PDF or TXT codecs.

VIII. A number of Employer Welfare Preparations

The Proposed Guidelines would require MEWAs that provide or present
protection for medical advantages to supply an inventory of every
taking part employer within the MEWA (by title and EIN) within the Kind
M-1, and, for sure MEWAs, an excellent religion estimate of every
taking part employer’s share of the whole contributions
made by all taking part employers in the course of the plan yr.

In 2014, when the Cooperative and Small Employer Charity Pension
Flexibility Act (“CSEC Act”) was enacted into legislation, it
amended Part 103 of ERISA to require all a number of employer plans
(each retirement and welfare) to supply an inventory of taking part
employers and an excellent religion estimate of the share of complete
contributions made by every taking part employer in the course of the plan
yr on the plan’s Kind 5500. In late 2014, DOL issued a
regulation confirming that this requirement would apply for plan
years starting after December 31, 2013. (Unfunded and insured
a number of employer well being plans had been exempt from the requirement to
present the contribution info).

Nonetheless, when the SECURE Act grew to become legislation, it amended Part
103(g) of ERISA in order that solely retirement plan MEPs had to supply
the employer checklist and contribution breakdown, thus eliminating the
requirement for well being and welfare plans for plan years starting
after December 31, 2020. Due to this fact, many MEWAs had been wanting ahead
to ceasing finishing the contributing employer checklist with their
2021 Kind 5500 submitting.

However within the Discover, DOL notes that the data relating to
taking part employers “has confirmed helpful to the DOL for its
oversight features for each MEPs and people MEWAs that file the
Kind 5500” and that it consider there are different
“rulemaking and reporting authorities” that present a
foundation for persevering with the reporting requirement for MEWAs.
Due to this fact, DOL is now proposing that this info could be
added to the Kind M-1 submitting for each plan and non-plan MEWAs.

The Kind M-1 is required to be filed yearly by MEWAs, and in addition
upon sure triggering occasions that will happen mid-year. For
instance, an M-1 Kind is required to be filed when a MEWA begins
working in a brand new state, when its participant depend will increase by
50% or extra, and if it merges with one other MEWA. As a result of the
contributing employer checklist has been added to the Kind M-1, a MEWA
may conceivably be required to file a contributing employer checklist
a number of occasions per yr with the federal government. Unfunded and insured
MEWAs would stay exempt from the requirement to supply
contribution info. A further line could be added to the
Kind M-1 requiring MEWAs to report any self-employed people
receiving protection from the MEWA that aren’t related to a
specific taking part employer.

For a number of employer plans that present welfare advantages different
than medical care, the contributing employer checklist will stay because it
is immediately, an attachment to the Kind 5500.

Including the checklist of contributing employers to the Kind M-1 for
each plan and non-plan MEWAs shall be an unwelcome shock for
MEWAs. Whereas DOL believes the checklist of taking part employers is
helpful for its means to supervise MEWAs, most MEWAs view their checklist
of taking part employers as proprietary and can chafe on the
prospect of including this info to the Kind M-1. Furthermore, the
Kind M-1 might have to be filed a number of occasions per yr by a MEWA.
For instance, a brand new Kind M-1 have to be filed mid-year if the MEWA
merges or experiences a major enhance in contributors. For
this purpose, some MEWAs might have to file a contributing employer
checklist a number of occasions per yr. Filed Varieties M-1 are publicly
obtainable (just like the Kind 5500) so a MEWA’s checklist of
taking part employers shall be absolutely accessible.

IX. Miscellaneous Revisions to the Kind 5500

The Proposed Guidelines would additionally add the next key revisions,
amongst different gadgets:

  • IQPA Audit Requirement for Particular person Account
    . A big plan (usually with 100 or extra
    contributors) is required to connect an IQPA audit report and
    associated monetary statements to its Kind 5500. At the moment, whether or not a
    plan qualifies as “giant” relies on the variety of
    staff who’re eligible to take part within the plan as of the
    starting of the plan yr, no matter whether or not all of these
    eligible staff have elected to make a contribution and have
    account balances. The Preamble to the Proposed Guidelines notes that
    “some stakeholders have identified that using this
    definition might lead to two plans with the identical variety of lively
    contributors, with one topic to an audit and the opposite not primarily based
    on the variety of non-participating however eligible staff.” To
    right this challenge, the Proposed Guidelines change the strategy of
    counting contributors for particular person account plans. Whether or not the
    plan is “giant” or “small” for functions of the
    audit requirement would depend on the variety of contributors with
    account balances as of the start of the plan yr and
    acceptable strains could be added to the Kind 5500 for these plans
    (as reported on proposed line 6g(1) on the Kind 5500 or line 5c(1)
    of the Kind 5500-SF).

  • 2021 Annual Return/Report Directions for MEPs and
    . The Proposed Guidelines would revise the 2021 Kind 5500
    to supply “an interim methodology of reporting taking part
    employer info for MEPs and PPP figuring out info
    pending the Schedule MEP implementation.” This methodology would
    encompass together with a “nonstandard attachment” to the
    2021 Kind 5500 as at the moment required, with the content material of such
    attachment to incorporate the combination account balances attributable
    to every taking part employer within the plan in keeping with the
    SECURE Act’s amendments to Part 103(g) of ERISA.

  • New breakout classes could be added to the
    “Administrative Bills” strains of the Schedule H steadiness
    . New breakout classes would come with particular
    strains for: audit charges, financial institution or belief firm charges, actuarial charges,
    authorized charges, valuation charges, salaries, trustee charges and

  • Belief Info. Belief questions could be
    added to the Kind 5500, together with strains that may determine the
    title of belief, the belief’s EIN, and the title and cellphone quantity
    of the trustee.

  • IRS Questions. Sure IRS questions could be
    added for retirement plans, together with questions associated to
    nondiscrimination and protection testing, whether or not the plan makes use of a
    pre-approved plan, and, if that’s the case, the date of the plan’s favorable
    dedication letter.

The change to the strategy of counting contributors for particular person
account plans must be a welcome change for a lot of plan sponsors.
Permitting a plan to qualify as a small plan primarily based on having fewer
than 100 contributors with account balances will simplify plan
administration and save many plans the headache and expense of the
annual plan audit. This variation signifies that many outlined contribution
plans that had been required to have an audit previously will now
qualify for an exemption from the audit requirement primarily based on the
DOL’s small plan audit waiver regulation at 29 C.F.R. §

The addition of latest classes to the Administrative Expense
strains of Schedule H is clearly an enforcement instrument. DOL will
doubtlessly use the detailed info relating to plan funds
for authorized, audit, recordkeeping and trustee charges to evaluate whether or not
the plan’s bills are cheap. This detailed info
will even be obtainable to the plaintiff’s bar. The belief and
IRS questions are additionally added to enhance the Businesses’
enforcement efforts. The IRS compliance questions shall be used to
assess the plan’s compliance with qualification necessities
and determine plans for additional examination or audit.

X. Applicability Dates and Subsequent Steps

If adopted, the proposed amendments would usually apply to
plan years starting on or after January 1, 2022 (i.e.,
relevant to the 2022 Kind 5500 filings, which shall be filed
throughout calendar yr 2023). Nonetheless, the proposed amendments to
implement Part 103(g) of ERISA (i.e., the modification
requiring the combination account balances for every patriating
employer in a MEP or PEP listed on the Kind 5500) would apply to
reporting for plan years starting on or after January 1, 2021.
Feedback on the Proposed Guidelines have to be submitted to the Division
of Labor by November 1, 2021.


1. Single employer welfare plans with below
100 contributors which are unfunded or insured are exempt from
submitting a type 5500 below 29 CFR 2520.104-29.

The content material of this text is meant to supply a normal
information to the subject material. Specialist recommendation must be sought
about your particular circumstances.

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