Additional Final Form 5500 Guidance Issued

The Department of Labor’s (DOL’s) Employee Benefits Security Administration, the IRS, and the Pension Benefit Guaranty Corporation (PBGC) have released a third and final phase that implements a September 2021 regulatory proposal. This guidance package includes a final rule and final forms revisions, which address changes related to provisions in the Setting Every Community Up for Retirement Enforcement Act enacted in December 2019. The revisions are effective for plan years beginning on or after January 1, 2023. A DOL news release highlights notable changes.

• A consolidated Form 5500 reporting option for certain groups of defined contribution retirement plans and improved reporting by pooled employer plans and other multiple employer plans.
• A change in the participant-counting methodology when determining eligibility for simplified reporting alternatives available to small plans (i.e., plans with fewer than 100 participants).
• A breakout of reporting on administrative expenses paid by the plan on the plan’s financial statements.
• Further improvements in financial and funding reporting by PBGC-covered defined benefit plans.
• The addition of selected Internal Revenue Code compliance questions to improve tax oversight and compliance of tax-qualified retirement plans.
• Technical and conforming changes as part of the annual rollover of forms and instructions.