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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
The Employee Benefits Security Administration (EBSA) has announced a final regulation requiring plans to file Form 5500 annual reports electronically, beginning with 2008 plan year filings due in 2009. Simultaneously, EBSA, along with the IRS and the PBGC, have proposed changes to the forms that will be processed under the new electronic system (see related story below).
"We are moving to a wholly electronic filing system that will be streamlined, cost-effective, and more efficient for plans. This new state-of-the-art system will increase the accuracy of information used by the public and the government," said Ann L. Combs, Assistant Secretary of Labor for EBSA.
EBSA is adding a new ERISA Reg. §2520.104a-2 which establishes a requirement for the electronic filing of Form 5500 for purposes of the annual reporting requirement under ERISA Title I. Under this new regulation, any annual report, including any accompanying schedules or attachments, filed with the Labor Department under Part 1 of Title I of ERISA, must be filed electronically, starting with any plan year beginning on or after January 1, 2008. For non-plan filings, this requirement applies to reporting years beginning on or after January 1, 2008. This represents a one-year delay as earlier proposed regulations had called for electronic filing requirements to take effect for plan years beginning on or after January 1, 2007 (see CCH Pension Plan Guide ¶20,534Y).
Under this delayed effective date, most filers will have until at least July of 2009 to make any necessary adjustments to accommodate the electronic filing of their annual report. In moving to a wholly electronic filing system, EBSA rejected requests submitted by commenters for a phase-in period giving filers a choice about whether to file electronically.
According to EBSA, several commenters asked for a one-time exemption from annual reporting civil penalties for unintentional filing violations due to lack of familiarity with the new filing process. Under ERISA §502(c)(2), civil penalties of up to $1,100 per day may be imposed for the failure or refusal to file an annual report required under ERISA.
At this time, however, EBSA declined to announce a general exemption from the annual reporting civil penalties. EBSA acknowledges that plan sponsors, plan administrators, and service providers may encounter technical and logistical problems in taking the necessary steps to transition to a wholly electronic filing system. However, EBSA indicates that, in assessing civil penalties, it will take into account technical and logistical obstacles experienced by plan administrators who are acting prudently and in good faith to comply with the new rules during the first year of the wholly electronic filing system. Further, EBSA notes that it will be coordinating its annual reporting compliance efforts with the IRS.
In the preamble to the final regulations, EBSA noted that the requirement to file annual reports electronically does not affect the record retention or disclosure obligations under ERISA §107 and ERISA §209. Similarly, a plan administrator's obligation to make the latest annual report available for examination and to furnish copies upon request, under ERISA §104(b), are not affected by an electronic filing requirement.
For more information on this and related topics, consult the CCH Pension Plan Guide.
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