The U.S. Department of Labor, the Internal Revenue Service and the Pension Benefit Guaranty Corporation are seeking public comments on proposed revisions to modernize and improve a form that is filed by private-sector pension and benefits plans.
Form 5500 is the primary source of information about the operations, funding and investments of private-sector, employer-provided plans in the U.S. According to the department, this encompasses 2.3 million health plans, a similar number of other welfare plans and nearly 681,000 pension plans. Covering around 143 million employees, retirees and dependents, these plans have an estimated USD$8.7 trillion in assets.
“The proposed form changes and related regulatory amendments are important steps toward improving this critical enforcement, research and public disclosure tool,” said Phyllis C. Borzi, assistant secretary of the Employee Benefits Security Administration, in a news release. “The 5500 is in serious need of updates to continue to keep pace with changing conditions in the employee benefit plan and financial market sectors.”
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The proposed revisions are intended to modernize financial statements and investment information related to employee benefits plans, update reporting requirements for fee and expense information, increase accessibility of filed data, make mandatory the reporting of all group health plans covered by Title I of the Employee Retirement Income Security Act, and improve compliance under ERISA and the Internal Revenue Code.
Under Titles I and IV of ERISA and the Internal Revenue Code, U.S. pension and employee benefits plans are required to file annual reports concerning the financial condition and operations of the plan. The department argues that since Form 5500 information is open to the public, modernizing the data collection and availability will allow interested stakeholders to perform data-based research.
The proposals are open for a 75-day comment period, with the agencies seeking public comment from all stakeholders. If they go through, form revisions would begin in 2019.
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