DOL Releases Proposed Revisions to Form 5500 Reporting

The Department of Labor’s Employee Benefits Security Administration (EBSA), in conjunction with the IRS and Pension Benefit Guarantee Corporation (PBGC), have released proposed forms revisions modifying requirements for Form 5500, Annual Return/Report of Employee Benefit Plan, reporting. Additionally, the EBSA has issued a proposed rule to amend regulations relating to annual reporting requirements under Title I of the Employee Retirement Income Security Act of 1974 (ERISA).

The Setting Every Community Up for Retirement Enhancement (SECURE) Act included a provision that would allow employers sponsoring defined contribution plans that have the same trustee, administrator, fiduciaries, plan year, and investment options the opportunity to file one common Form 5500 beginning in 2022. While guidance outlining reporting requirements in accordance with the Act had been anticipated, the proposals also appear to include several other forms modifications. 

The following revisions have been highlighted as part of the guidance package release.

• Implement SECURE Act requirements by establishing a new type of direct filing entity called a Defined Contribution Group Reporting Arrangement and add a new Schedule DCG that such reporting group must file
• Modify Form 5500 to reflect pooled employer plans as a new type of plan and modify multiple employer plan reporting of information by establishing a new Schedule MEP
• For multiple employer welfare plans that provide medical benefits, move questions regarding participating employers from the Form 5500 to the Form M-1 Report for Multiple Employer Welfare Arrangement (MEWA) and Certain Entities Claiming Exception, and apply that reporting requirement to non-plan MEWAs that file the Form M-1
• Expand reporting requirements to add new fee and expense reporting and enhance the content of the existing schedules of assets held for investment
• Add questions to improve financial and funding reporting by PBGC-covered defined benefit pension plans

There will be a 45-day comment period following publication in the Federal Register.