Tips for July 31 Filings
The 2008 Form 5500 filings for calendar year plans are due in just a few weeks. Here are a few reminders and tips to make your work go smoothly.

Annual Funding Notice for Small PBGC-Covered Defined Benefit Plans
Small plan filers (including those filing under the 80/120 rule) are subject to a timing rule that is somewhat -- but not entirely -- similar to the SAR rule. For these plans, the annual funding notice must be provided no later than the earlier of:

• the date on which the Form 5500 report is filed, or
• the latest date the annual report could be filed, including extensions

It should be noted that a “small plan filer” for this purpose is determined based upon the participant count for every day of the plan year prior to the year for which the Annual Funding Notice is issued. For 2008 plan years, that means you look at the participant count during the 2007 plan year.

Ffor more discussion of the Annual Funding Notice, the EBSA has helpfully provided the model notices in Word format.
[click here] for the single-employer model notice. [Appendix A]
[click here] for the multiemployer notice. [Appendix B]

The traditional SAR format should be used for defined benefit plans that are not subject to PBGC insurance, which generally includes those plans that cover professional services companies (think lawyers and doctors, for example) with no more than 25 employees. Of course, owner-only defined benefit plans are not subject to the SAR or Annual Funding Notice rules.

Regulations for SAR content may be found at ERISA Reg. Section 2520.104b-10(d)(3).

Additional Language for Annual Funding Notice
In order for a small defined benefit plan to qualify for the waiver of the report of an independent accountant, the Annual Funding Notice must include:

• the name of each regulated financial institution holding or issuing qualifying plan assets and the amount of such assets as of the end of the plan year;
• the name of the surety company issuing the fidelity bond, if the plan has more than 5% of its assets in non-qualifying plan assets;
• a notice that participants and beneficiaries may, upon request and without charge, examine or receive from the plan administrator evidence of the required bond and copies of statements from the regulated financial institutions; and
• a notice that participants and beneficiaries should contact the EBSA Regional Office if they are unable to gain access to the information described in the last bullet point.

For more information, see page 41 of the 2008 Instructions for Schedule I, right hand column, under Condition 2.

Intranet and Internet Posting Required for Defined Benefit Plans
PPA §504(a) added new ERISA §104(b)(5) and requires internet and intranet posting of a defined benefit plan’s 2008 Form 5500 actuarial information. All Schedules SB, MB or other actuarial information schedules filed for 2008 plan years received by the Department of Labor’s EFAST center will be posted on a public disclosure website at within 90 days of EFAST’s receipt of the filing.

The law requires similar intranet posting by the plan sponsor (or the plan administrator on behalf of the plan sponsor); however, such intranet posting is only intended to be for communication with plan participants and not the public. If a plan sponsor does not maintain an intranet, then no posting is required. The statute does not clearly specify a 90-day window for intranet posting and the DOL has not issued any guidance in this regard. To be on the safe side, the intranet posting should be made within 90 days of the date the 2008 Form 5500 is submitted to EFAST for processing. Note that only the actuarial schedule (Schedule SB or MB) need be posted; attachments do not need to be uploaded to the intranet.

Caution! Actuaries should consider whether Schedule SB should be filed by one-participant plans filing Form 5500-EZ. While the actuarial certification must be maintained with the sponsor’s records, filing a one-participant Schedule SB for 2008 will subject that information to posting on the public disclosure website. The requirement to include Schedule B with Form 5500-EZ was eliminated beginning with 2005 plan year filings.

2009 Short Plan Year Filings
It’s common knowledge that mandatory electronic filing rules apply to plan years beginning in 2009. The agencies, however, have anticipated that filers with due dates before January 1, 2010 -- the date the EFAST2 filing system is expected to go “live” -- will not want to delay filing for short 2009 plan years. This is particularly true where the short plan year arises on account of a plan termination which may be coincident with cessation of business operations by the plan sponsor.

Option #1. Short 2009 plan year filers with due dates to submit their 2009 filing before January 1, 2010 may use plan year 2008 forms and submit their 2009 filing to EFAST on or before the due date for their short plan year filing. Filings received after June 30, 2010 will be manually entered into the governmental system.

Option #2. Alternatively, short 2009 plan year filers with due dates before January 1, 2010 are given an automatic extension of time to electronically file their complete 2009 Form 5500 until 90 days after the 2009 filing system is available on the DOL website. The DOL notes that this special extension is being granted to encourage short plan year filers to file electronically under the EFAST2 system thereby eliminating the need for manual data entry on their end.

Although the language suggests that only those short 2009 plan year filings with a due date before January 1, 2010 may file on paper using the 2008 form, I’ve been told that it’s reasonable to assume that DOL will not reject any filings made on paper before the cutoff date.

No More Correspondence from EFAST
Effective July 1, 2009, EFAST (in Lawrence, KS) has shut off its system that generates correspondence to plan filers when there are apparent deficiencies in the filing, based upon the system’s analysis of the report. These letters usually ask for clarification of data entry or missing schedules or other attachments and follow-up correspondence is issued about 30 days after the initial letter.

Although this correspondence protocol will cease, the EFAST system will still look for errors or inconsistencies in the filings. In some instances, correspondence may be issued by the Washington office of EBSA -- it’s important to respond to such inquiries immediately! These letters may have much stricter response time limits and it’s possible that penalties may apply for failure to act quickly.

Upcoming Webcast
Janice will be presenting a 100-minute Web cast for NIPA ( on Thursday, August 20, 2009 beginning at noon (eastern)....Is Your Firm Prepared to Manage EFAST2 and the 2009 Form 5500 Changes? By attending this Web event, you will learn:

• How EFAST2 e-filing will impact your work process and your clients
• What your firm should be thinking about now to prepare for 2009 filings
• Which plans may use the new Form 5500-SF
• How to approach the revised Schedule C
• Other form and schedule changes to note
• How to file Form 8955-SSA and Form 5500-EZ with IRS