Conduent pw c_web june 2017 (revised deck 6-21-17(mary m)

Conduent Human Resource Services
Knowledge Resource Center
Form 5500 Update for the 2016 Filing Season
Mary Miller
June 22, 2017

Agenda
• Purpose of Form 5500
• Information reported on the Form 5500 filing
• Plans & Entities that file Form 5500
• Filing deadline
• Required Signature on Form 5500
• Record Retention
• Extensions
• Late filing penalties
• Form 5500 series
• Amending Form 5500
• Changes to 2016 Form 5500
• Changes to 2016 Form 8955-SSA
• Changes to 2017 Form 5500
• Proposed Changes to 2019 Form 5500
2

4
What is the Form 5500?
• Annual report of employee benefit plans and certain direct filing
entities
• Primary source of information about employee benefit plans
• Used by DOL, IRS, and PBGC
• Used for enforcement, research and disclosure to participants and
beneficiaries
• Most annual reports publicly available

5
What type of information is reported on the
Form 5500 filing?
• Basic identifying information about plan or direct filing entity
• Information about the sponsor of the plan or direct filing entity
• Information about the plan administrator
• Participant information
• Plan features and benefits provided
• Funding and benefit arrangement
• Financial and insurance information
• Compliance information
• Information about plan termination and transfer of assets
• Service provider information
• Actuarial information
• Information about direct filing entities

6
What may the Form 5500 filing consist of?
• Form 5500 and Applicable Schedules
− Schedule A (Insurance Information)
− Schedule C (Service Provider Information – Large Plans & DFEs)
− Schedule D (DFE/Participating Plan Information)
− Schedule G (Financial Transaction Schedules – Large plans & DFEs)
− Schedule H (Financial Information – Large Plans & DFEs)
− Schedule I (Financial Information – Small Plans)
− Schedule MB (Multiemployer Defined Benefit Plan and Certain Money
Purchase Plan Actuarial Information)
− Schedule SB (Single-Employer Defined Benefit Plan Actuarial Information)
• Form 5500-SF - Only Schedules MB and SB are applicable
• Form 5500-EZ - Has no applicable Schedules

7
Who files the Form 5500?
• Pension Plans
─ Defined benefit (traditional DB, cash-balance, pension equity, floor offset
plan)
─ Defined contribution (profit-sharing, 401(k), 403(b), money purchase, target
benefit, stock bonus, ESOP, certain IRAs)
• Welfare Plans
─ Medical, dental, vision, life, disability, short term and long term disability,
long term care, accidental death and dismemberment, certain severance
plans, pre-paid legal services, certain employee assistance programs, etc.
─ Medical flexible spending accounts
• Direct filing entities (DFEs)
─ Master Trust Investment Account
─ Common/Collective Trust
─ Pooled Separate Account
─ 103-12 Investment Entity
─ Group Insurance Arrangement

8
Who is required to sign Form 5500?
• Although the Internal Revenue Code permits either the plan
sponsor/employer or plan administrator to sign the plan filing, under
ERISA, the signature of the plan administrator is required. If the
filing is not electronically signed by the plan administrator, it will be
subject to rejection and civil penalties under Title I of ERISA.
− If the plan administrator is an entity, the electronic signature must be in the
name of the person authorized to sign on behalf of the plan administrator.
• Signature of the person authorized to sign on behalf of the DFE is
required for a DFE filing.
• Plan administrators must keep a manually signed copy of the Form
5500, with all required schedules and attachments, as part of the plan’s
records.

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Can service providers sign the Form 5500?
• Plan Administrators can elect to have a service provider who manages
the filing process sign the filing electronically. When this E-Signature
alternative is used, the service provider should:
− Obtain written authorization from the plan admin/sponsor
− Keep a copy of the authorization for the service provider’s records
− Attach PDF copy of first two pages of the manually signed Form 5500/5500-
SF, which was signed by the plan administrator
− Notify plan admin/sponsor that image of signature will be seen on DOL’s
website for public disclosure
− Communicate any inquiries and information received from EFAST2, DOL, IRS
or PBGC regarding the Form 5500/5500-SF filing
• The instructions for Form 5500 caution service providers to consider
implications of IRS tax return preparer rules

10
How long should the Form 5500 be kept?
• The rules and regulations for records retention come from three distinct sources:
DOL, IRS, and PBGC
− Under Section 107 of ERISA, the DOL requires employers that file Form 5500 keep all
related records to support the filing for at least six years following the date the Form 5500 is
filed. However, if there was any information reported on prior Form 5500 filings relating to
the determination of benefits for participants and their beneficiaries, this information should
be retained indefinitely (for example, Schedule SSA, which was part of the Form 5500 filings
prior to the 2009 plan year)
− The IRS rules on the length of time plan fiduciaries should keep plan records mirror the
length of time the IRS has the ability to audit them. For qualified retirement plans, plan
fiduciaries must keep records associated with any plan filing for at least three years from the
date it was filed
o According to informal guidance from the IRS, if issues are discovered on audit, the IRS could
extend their audit authority to filings occurring more than three years in the past if a substantial
error is identified. However, the IRS generally will not go back more than the last six years.
− PBGC regulations require that all records that validate the insurance premiums paid to the
PBGC must be kept for at least six years after the premiums were due. In addition, the plan
sponsor of a terminated plan must maintain records to demonstrate compliance with the plan
termination provisions for six years after the date the post-distribution certification is filed
with the PBGC

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When is the Form 5500 due?
• Plans and GIAs
─ Last day of the 7th month after year end
─ May be extended to 9½ months after year end
o Proposed 10 ½ month extension repealed by the Fixing America’s Surface
Transportation (FAST) Act of 2015
• DFEs other than GIAs
─ 9 ½ months after the DFE year end
─ No extensions
If filing due date is Saturday, Sunday or Federal holiday, filing due on next business day
• Form 5500 filing deadline is based on plan administrator’s time
zone and not return preparer’s time zone
─ File Form 5500 for plan/GIA based on year in which plan/GIA year began
─ File Form 5500 for DFE (other than a GIA) based on year in which DFE
year ended
Example: If plan and DFE year is 10/1/15 – 9/30/16, use 2015 Form 5500 for the plan
and 2016 Form 5500 for the DFE

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Extensions
• File Form 5558 with IRS
─ Must be submitted to the IRS no later than the filing deadline for Form 5500
─ Grants 2 ½ months extension for plans and GIAs (15th day of third month
after normal filing deadline)
─ Signature or explanation not required if filing for an extension for Form 5500
and/or Form 8955-SSA
• Automatic extension
─ Sponsor receives an automatic extension to file Form 5500 and/or 8955-
SSA if
o Plan year and plan sponsor’s tax year are the same
o Plan sponsor has been granted an extension of time to file its federal income tax return to a
date later than normal due date for Form 5500 series
o Must retain copy of application for extension of time to file federal income tax return with
records
o Prior to a recent change to certain corporate return filing deadline and extensions, the
automatic extension granted the Plan/GIA only 1-½ months extra time to file Form 5500/8955-
SSA (not the 2-½ months granted by filing Form 5558)
• Extension requests are no longer required to be attached to Form 5500

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Form 5558
• Used to extend Form 5500 Series, Form 8955-SSA, or Form 5330
• Must use the most current version (August 2012)
• Must file separate Form 5558 for each plan
─ May use a single Form 5558 to extend the Form 5500 and Form 8955-SSA
for the same plan
─ Lists attached to the form will no longer be processed
• Checkbox added for recently adopted plans that are requesting an
extension for a plan that will be filing a Form 5500 Series for the first
time
• Must file Form 5558 (by paper) with the IRS in Ogden, Utah
− Do mail to the DOL
─ Can be mailed through U.S. Postal Service or through one of the approved
IRS’ private delivery services (DHL, FedEx, and UPS)

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Form 5558
• Copies of extension request used to extend the filing deadlines of Form
5500 series or Form 8955-SSA will not be returned to filer
− Keep a copy of extension request and proof of mailing for records
• Sometimes the IRS will send filers one of the following notices:
− CP 216F (Application for Extension of Time to File an Employee Plan
Return – Approved)
− CP 216H (Application for Extension of Time to File an Employee Plan
Return – Denied Not Timely Filed)
o Need to provide proof to the IRS Form 5558 was timely filed
It is important to check notices received from the IRS for errors (for example,
wrong plan year ending date, plan number, or extended filing date, etc.)

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Extensions for Corporate Returns
• The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015
(Surface Transportation Act) changed the tax return filing deadlines for corporations,
partnerships, and tax-exempt entities for tax years beginning after December 31, 2015
and, in turn, affects the automatic extensions to file Form 5500 and Form 8955-SSA.
• Before The Surface Transportation Act, if plan sponsors used the automatic extension
option for filing Form 5500 and/or Form 8955-SSA instead of filing Form 5558 there was
always a one-month gap between the extended filing deadline under the automatic
extension and the extended filing deadline under the Form 5558 extension
− For example, plan year and the plan’s sponsor tax year is a calendar year, the corporation
applied for an extension for filing its 2015 corporate return. If the plan relied on the automatic
corporate extension, the 2015 Forms 5500/8955-SSA filing deadline was September 15, 2016.
However, had the plan sponsor filed the Form 5558 by August 1, 2016, the 2015 Form
5500/8955-SSA extended filing deadline would have been October 17, 2016
• After the Surface Transportation Act, if the plan sponsor is a calendar year C corporation
and the plan year and the tax year coincide, and the plan sponsor applied for an
extension for its 2016 corporate return, the corporate extension filing deadline is October
16, 2017 so the 2016 Form 5500/8955-SSA automatic extension filing deadline is
October 16, 2017, which is the same filing deadline as the Form 5558 extended deadline
of October 16, 2017 (had the plan sponsor applied for an extension on or before July 31,
2017).

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Extensions for Corporate Returns cont.
• The details:
− Commencing with the 2016 taxable year,
o The initial filing deadline for the tax return of C corporations (Form 1120) is now the 15th day of
the 4th month after the end of the corporation’s tax year (formerly, the 15th day of the 3rd month)
 For C corporations with a fiscal tax year ending June 30, the initial filing deadline for the
corporate return remains the 15th day of the 3rd month after the end of it’s tax year.
o The initial filing deadline for the corporate returns of S corporations (Form 1120S) did not
change
o The initial filing deadline for the tax returns of partnerships (Form 1065) is now the 15th day of
the 3rd month after the end of the partnership’s tax year (formerly, the 15th day of the 4th month)
− 2016 Form 7004 (Applicable for Automatic Extension of time to File Certain Business Income Tax,
Information, and other Returns)
o The instructions were revised to indicate for tax years beginning after 2015, the extensions of
time to file tax returns for corporations and partnerships have changed
 Automatic 6-month extension for a calendar year end C corporation’s tax returns (other than a
June 30 tax year end)(to 10/15 for a calendar year C corporation)
 Automatic 7-month extension for C corporation tax returns with tax years ending on June 30 (to
January 31 for a C Corporation with a 6/30 tax year-end)
 Automatic 6-month extension for partnerships tax returns and S Corporations (to 9/15 for a
calendar year partnership)

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When the Form 5558 or automatic
extension is not enough
• If the required audited financials are not ready on the extended Form
5500 filing deadline (for example, October 15 for calendar year end
plans)…
− Can submit Form 5500 filing without required accountant's report, however,
filing considered incomplete and may be subject to further review or rejection
and assessment of civil penalties
o If required accountant's report is not attached leave line 3 of the Schedule H (Form
5500) blank
o If filing without required accountant’s report, submit amended filing with report as
soon as possible (the DOL is sending to plan administrators a notice of rejection,
which gives the plan administrator 45 days to correct the filing)

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What are the late filing penalties for the
Form 5500?
• Penalties
− DOL Penalties
o Late filers – may be assessed up to $50 per day, with no limit (if filed
voluntarily), for the period the plan administrator failed to file, determined without
regard to any extensions for filing
o Non-filers – may be assessed a penalty of $300 per day (if discovered by DOL),
up to $30,000 per year, until a complete annual report is filed
o Civil Penalty – up to $2,097 per day (formerly, $1,100) if plan administrator fails
or refuses to file annual report
o Deficient Filing Penalties – missing or deficient audit report - $150 per day
capped at $50,000
o Criminal penalties - intentional violation of ERISA
− IRS Penalties
o $25 per day (up to $15,000) for failure to file complete annual return/report
o $1,000 for not filing Schedule SB or MB (Actuarial Statement)
One or more of the above penalties may apply to a single filing

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Which Form should be used?
• Form 5500
─ Used by large pension and welfare benefit plans with 100 or more participants (or not
relying on 80-120 participant rule) and DFEs
─ Used by multiple-employer welfare benefit plans required to file Form M-1, regardless
of the number of participants in plan or how the plan is funded
• Form 5500-SF
─ Pension plans and funded welfare benefit plans with fewer than 100 participants as of
the beginning of the plan year (or relying on 80-120 participant rule)
─ Form 5500-EZ filer option for one participant and foreign plans. However, Form
5500-SF is mandatory for certain one participant and foreign pension plans
commencing with the 2015 plan year if filer filed more than 250 returns during the
calendar year
Forms 5500 and 5500-SF filed electronically with the DOL

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Which Form should be used? Cont.
• Form 5500-EZ
─ Used by one-participant plans with $250,000 or more in assets as of the
end of the plan year
o Form 5500-EZ must be filed for each of the employer’s one-participant pension
plans, including those with $250,000 or less in assets at the end of the plan year if
the $250,000 threshold is satisfied by taking into account all of the employer’s one
participants plans on a combined basis.
o Includes owners or partners and spouses – No employees covered
─ Used by certain foreign pension plans maintained outside the U.S. primarily
for non-resident aliens. Sponsors of foreign pension plans file Form 5500-
EZ if
o the employer is a domestic employer or foreign employer with income derived
from sources within the U.S. (including foreign subsidiaries of domestic
employers), and
o contributions to the plan are deducted on its U.S. income tax return
Form 5500-EZ must be filed for foreign plans that cover US citizens and residents

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Form 5500-EZ
• Form 5500-EZ is filed by paper with the IRS but Form 5500-SF may be
voluntarily filed electronically with the DOL instead of Form 5500-EZ
─ However, mandatory Form 5500-SF electronic filing instead of paper Form
5500-EZ filers for plan years beginning on or after 1/1/2015
o If filed at least 250 returns with the IRS during the calendar year
o Economic hardship waivers available but must be requested at least 45 days
before the due date (including extension) for filing Form 5500-EZ
• Form 5500-SF filings with ”One-Participant Plan” or “Foreign Plan” box
checked are blocked from public access

22
Form 5500-SF
• A three page form
• Includes basic identifying information and financial information similar to
Schedule I
• No schedules are required except for Schedule SB for defined benefit
plans
• Filed electronically with DOL

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Who may file Form 5500-SF?
• Used for small pension and funded welfare plans with < 100 participants (or 80
to 120 rule applies)
− Plan must be eligible for small plan audit waiver (not with enhanced bonding)
− Plan is not invested in employer securities
− All plan assets must have readily determinable FMV
o Plan assets that have a readily determinable FMV include mutual funds, investment contracts
with insurance companies and banks, publicly traded securities held by registered broker
dealer, cash and cash equivalents held by a bank, loans to participants, etc.
o Plan assets invested in alternative investments, which include financial assets such as real
estate, limited partnerships, hedge funds, venture capital, private equities and/or collectibles
such as gold, art, antiques, coins, or stamps do not have a readily determinable fair market
value
− Plan is not a multiemployer pension or welfare benefit plan
− Plan is not a multiple employer welfare benefit required to file Form M-1
Direct filing entitles are not eligible to file Form 5500-SF

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Amended Forms 5500
• All amended returns must be filed electronically through EFAST2 – even if originally
filed on paper
• If amending a filing for a plan year prior to 2013 must use current year’s Form 5500
or 5500-SF and Schedules A, D, G, H, I if required for that year
• For defined benefit plans, must use the correct year Schedule B, Schedule SB, or
Schedule MB
• Must use correct year Schedules E, P, R and T, if required for that year
• May use the Schedule C for correct year rather than the current year form
• If the prior year schedule is not listed on line 10 of the current year’s Form 5500,
then there is nothing to check on that line (include schedule as an attachment)
• DOL’s EBSA website has Form 5500 version selection tool to assist in determining
which Form 5500 and schedules to use. Check out the online Form Selection tool
at: http://askebsa.dol.gov/FormSelector/
• DOL’s EFAST2 FAQ 4 can help guide you

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Amended Forms 5500 cont.
• 403(b) plans covered by Title I of ERISA
─ Streamlined pension plan reporting option for 2008 and prior plan years
o Only need to complete lines 1-4, and line 8 on current year’s Form 5500
o No schedules or attachments needed (e.g., audited financial statements for large 403(b)
plans)
• Entire 5500, including all schedules and attachments, must be
resubmitted when filing an amended return
• Do not attach the former Schedule SSA (Form 5500) or Form 8955-SSA to any
Form 5500 filing submitted to the DOL
─ Filed separately with the IRS

2016 Form 5500 Changes
• IRS Compliance questions:
─ Compliance questions should not be completed for 2016 plan year!
Form 5500
Preparer information (bottom of page one)
Form 5500-SF
Preparer information (bottom of page one)
Part VIII (Trust Information) – lines 14a – 14d
Part IX (IRS Compliance Questions) – lines 15a-15b, 16a-16b, 17a-17b,18 and 19
Form 5500-EZ
Preparer information (bottom of page two)
Trust/Trustee information – lines 4a -4d
IRS Compliance questions – lines 13a-13b, 14 and 15
Schedule H
Line 4o (IRS Compliance Question)
Part V (Trust Information) – lines 6a – 6d
Schedule I
Line 4o (IRS Compliance Question)
Part V (Trust information) – lines 6a – 6d
Schedule R
Part VII (IRS Compliance Questions) – lines 20a- 20b, 21a-21b and 22a-22b
27

2016 Form 5500 Changes cont.
• IRS Compliance questions (con’t):
─ Although these questions should not be completed, they offer a lot of insight as to
what the IRS is going to be looking at more closely. The compliance questions
focused on the following topics:
o In Service Distributions
 Were distributions made during to the plan year to an employee who attained age 62 and had not
separated from service?
o Required Minimum Distributions
 Were there participants who were 5% owners and who had attained at least age 70-1/2 during the prior
plan year?
o Nondiscrimination and Coverage Requirements & Testing
 For 401(k) plans, how did the plan satisfy the nondiscrimination requirements for employee deferrals
under section 401(k)(3) of the code for the plan year?
 What testing method was used to satisfy the coverage requirements under Section 410(b) of the code for
the plan year?
 How did the plan satisfy the coverage and nondiscrimination requirements of sections 410(b) and
401(a)(4) of the code for the plan year?
o Plan Qualification
 If the pension plan is a master and prototype plan or volume submitter plan that received a favorable IRS
opinion letter or advisory letter, what is the date of the opinion letter?
 If the plan is an individually-designed pension plan that received a favorable determination letter from the
IRS, what is the date of the most recent determination letter?
28

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2016 Form Changes cont.
Forms 5500, 5500-SF and 5500-EZ - Preparer’s information
Form 5500-SF and Schedules H and I – Trustee Information
*

30
Form 5500-SF (con’t)
Please note these IRS compliance questions that appeared on the 2015 Form 5500-SF were revised as follows on the 2016
Form 5500-SF:
• Line15a was revised to provide for clearer explanation of the question
• Line15c was combined with 15b to provide clearer explanation of the question
• Line16a was revised to provide clearer explanation of the question
• Lines 17a, 17b, 18, and 19 were eliminated
• Line 17c was renumbered 17a and Line17d was renumbered 17b
• Line 19 was revised to provide clearer explanation of the question and renumbered line 18 and Line 20 was revised to provide clearer
explanation of the question and renumbered Line 19

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Form 5500-EZ
Please note these IRS compliance questions that appeared on the 2015 Form 5500-EZ were revised as
follows on the 2016 Form 5500-EZ
• Lines 13a and 13b were deleted and line 13c was renumbered line 13a and line 13d was renumbered
line 13b
• Line 14 was revised to provided clearer explanation of the question
• Line 15 was deleted and line 16 was renumbered line 15

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Schedules H and I
Please note the IRS compliance questions that appeared on the 2015 Form Schedules H
and I were revised as follows on the 2016 Schedules H and I:
• Line 4o was removed and line 4p was renumbered line 4o. The new line 4o was further revised to
provide a clearer explanation of the question.

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Schedule R
Please note these IRS compliance questions that appeared on the 2015 Schedule R were revised as
follows for the 2016 Schedule R:
• Line 20a was revised to provide for clearer instructions
• Line 20c was combine with Line 20b to provide clearer explanation of the question
• Line 21a was revised to provide for clearer instructions
• Lines 22a, 22b, and 23 were eliminated
• Line 22c was renumbered 22a and Line 22d was renumbered 22b

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• Form 5500-SF and Schedules H, I, and R
The following IRS compliance questions were removed:
- Did the trust incur any unrelated business taxable income? (line 10j of 2015 Form 5500-SF and line
4o of 2015 Schedules H and I )
- Has the plan been timely amended for all required tax law changes? (line 17a of 2015 Form 5500-
SF and line 22a of 2015 Schedule R)
- Date the last plan amendment/restatement for the required tax law changes was adopted and the
applicable tax law changes and codes? (line 17b of 2015 Form 5500-SF and line 17b of Schedule
R)
- Is the plan maintained in a U.S. territory? (line 18 of 2015 Form 5500-SF and line 23 of 2015
Schedule R)
• Schedules H and I
- Line 5c was revised to add a follow-up question to the existing question (whether the
plan is a defined benefit plan covered by the PBGC insurance program). If the answer
is “yes”, the new question asks for the My PAA generated confirmation number from
the PBGC premium filing for the plan year (which is the 2016 PBGC premium
payment)

35
• Form 5500-EZ
- A new “Box D” was added to Part I of Form 5500-EZ to indicate whether the filer is
filing the return under the IRS Late Filer Penalty Relief Program.
o Formerly the filer was required to print in red letters on upper left hand corner of page one
above the form’s title, “Delinquent Return Submitted under Rev. Proc. 2015-32, Eligible for
Penalty Relief”
• Schedule SB
- The instructions for line 27, Code 1 were updated to reflect guidance on certain issues
relating to the application of the Cooperative and Small Employer Charity Pension
Flexibility Act (CSEC Act). This affects defined benefit pensions plans maintained by
groups of cooperatives and related entities and groups of charities as defined in
Section 414(y) of the Internal Revenue Code
• Schedule MB
- Line 5i – for the actuarial cost method used as the basis for this plan year’s funding
standard account computation, “Reorganization” has been removed as a cost method
option

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• Civil penalties
- In 2016 the new maximum penalty for a plan administrator who failed or refused to file
a complete Form 5500 has been increased from $1,100 per day to $2,063 per day
o Beginning in 2017, the DOL indicated that this penalty amount would be adjusted annually for
inflation no later than January 15 of each year.
 The 2017 increase was released after the 2016 Form 5500 instructions were published (published in the
Federal Register on January 18, 2017) – The new penalty for violations occurring after November 2, 2015 is
now $2,097 per day
• Prior year’s Form 5500
- For the 2012 and prior plan years, Form 5500/5500-SF for the applicable year cannot
be used for late or amended Form 5500 filings. You must use the 2016 Form
5500/5500-SF. Please note the following exceptions:
o Schedules B, E, P, MB, SB, R, and T for the applicable year must be used
o Schedule C for the applicable year or the current year (2016) can be used

37
Changes to 2016 Form 8955-SSA

38
2016 Form 8955-SSA Changes
• Minor changes in the instructions for the Form 8955-SSA
- Filers who are eligible to submit the Form 8955-SSA filing by paper, DHL Express is
now listed as one of the “approved private delivery services” to submit Form 8955-SSA
filings
o This corresponds with the approved private delivery services listed on the IRS’ website
- The caution item underneath the heading “How to File” was revised to remove the
following information:
o Because of privacy concerns, the inclusion of a social security number on Form 5500, Form
5500-SF, or on a schedule or attachment that is filed with the DOL using EFAST2, may result in
the return of the filing.

40
2017 Form 5500 Changes
• All IRS compliance questions were removed from Forms 5500/5500-SF and
Schedules H, I, and R
• Line 4 of the Form 5500 series was revised to provide that you also report a
change in the plan name and not only a change in the name and/or employer
identification number of the plan sponsor since the last Form 5500 was filed
• The instructions were revised to reflect the updated maximum civil penalty for a
plan administrator who fails of refuses to file a complete and accurate Form
5500
• Schedule MB instructions for line 6c has been updated to add mortality codes
for several variants of the RP-2014 morality table and to add a description of
the mortality projection technique and scale

41
Proposed Changes to the
2019 Form 5500/5500-SF
& Schedules

42
New EFAST2 contract
• EFAST2 is an electronic system of the DOL, IRS, and PBGC to simplify and
expedite the submission, receipt, and processing of the Form 5500/5500-SF
• Current EFAST2 contract with the DOL ends December 31, 2018
• Form processing under the new contract is targeted for 2019 plan year filings
beginning January 2020

43
Proposed changes to 2019 Form
5500/5500-SF & Schedules
• Generally, every ten years the Form 5500 and procedures are revised
Plan Year Year Filed Event
1989 1990 Form 5500-C (Return/Report of Employee Benefit Plan) was combined with Form 5500-R
(Registration Statement of Employee Benefit Plan) and the form was renamed the form
5500C/R
1999 2000 EFAST
DOL assumed responsibility for the Form 5500 filing (no longer filed by paper with the IRS)
The format of the Form 5500 and Schedules were revised and streamlined (Forms 5500-C
and 5500-R were eliminated, Creation of scannable forms (machine print or hand print),
etc.)
DFEs filing must use the Form 5500 instead of a stand alone separate report paper filing
with the DOL
2009 2010 EFAST2
Mandatory electronic filing of Form 5500
Creation of the Form 5500-SF
Form 5500 Reporting requirements for 403(b) plans were expanded mirror 401(k) plans
Schedule C reporting requirements were significantly expanded
Schedule SSA was removed from the form 5500 and was made a separate filing with the
IRS (Form 8955-SSA)
No longer have to attach the extension request (Form 5558 ) to Form 5500 filing
Foreign pension plans could not longer file Form 5500 but were required to file the Form
5500-EZ instead
2019 2020 EFAST3?
Proposed Massive changes!!!

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5500/5500-SF & Schedules cont.
• July 11, 2016, the DOL, IRS, and PBGC issued
− 777 page document outlining the proposed revisions to the Form 5500/5500-SF and schedules for
the 2019 plan year
o It outlined in detail the proposed revisions to the questions and the instructions (Appendix A, B,
and C). It did not indicate what the revised forms would look like.
o The DOL labeled these revisions, “Proposal to Modernize and Improve the Form 5500”
(sometimes referred to as the Form 5500 21st Century Initiative)
• 149 page proposed regulations to implement these changes was published in
the Federal Register on July 21, 2016
− The proposal also included a technical Appendix dated July 21, 2016, which was a separate 14
page document that explained the methodology and the data used to estimate the economic
impact of the proposal to modernizing the Form 5500 and its schedules, instructions and
attachments
• Developing the proposal was a multi-year tri- agency effort, which took into
account over 15 reports from the following sources:
− GAO (Government Accountability Office)
− DOL-OIG (Department of Labor’s Office of the Inspector General)
− TIGTA (Treasury Inspector General for Tax Administration)
− ERISA Advisory Council

45
• The proposed revisions fall under five areas to improve employee benefit plan
reporting:
1. Modernize the Financial and Investment Reporting
2. Modernize Data Collection and Usability
3. Updating and Improving Reporting of Service Provider Fee and Expense
Information
4. Support Oversight of Group Health Plans and Ongoing Implementation of the
Affordable Care Act
5. Improving Employee Benefit Plan General Compliance with ERISA and the Code

46
Modernize the Financial & Investment Reporting
• The asset categories on the Form 5500 have not been revised since the enactment of
ERISA. In addition, there has been a shift in the U.S. private pension system from
defined benefit plans towards defined contribution pension plans.
− The proposed updates focus on improving reporting regarding alternative investments, hard-
to value assets, and investment through collective investment vehicles (common/collective
trusts, pooled separate account, 103-12 Investment Entities).
 New subcategories for reporting assets held in cash and cash equivalents corporate bond and
stocks, U.S. government securities, unallocated insurance contracts, real estate,
partnership/joint venture Interest, foreign investments, etc.
 New investment categories in which alternative investments and hard to value assets were
traditionally reported under the ”other assets” category on the Schedule H (hedge funds, private
equity fund, derivatives, foreign investments, tangible personal property, participant directed
brokerage accounts, etc.)
 More information required to be reported on loans and fixed obligations by the plan in default,
leases in default, and nonexempt transactions
 More income breakouts
 More categories on the Schedule H for breakout of administrative expenses. Administrative
expenses charged directly against participant accounts would be separately reported from direct
expenses charged to other plan asset sources

47
Modernize the Financial & Investment Reporting cont.
 Plans that participate in a direct filing entities would no longer have to file a Schedule D. Instead, plans
with assets held in direct filing entities (master trust, common/collective trust, pooled separate accounts,
103-12 Investment Entities) would report information about assets held in DFEs on line 4i (Schedule of
Assets) attachment of the Schedule H for the plan.
 No longer need to prepare a separate Form 5500 filing for each master trust investment account. Only
one master trust filing would be required. The participating plans fractional interest in the master trust
would now be disclosed on the plan’s attachment for line 4i of the Schedule H (Schedule of Asset held for
Investment at End of Year and Schedule of Assets Disposed of During the Plan Year) as well as on the
Form 5500 filing for the master trust.
− Elimination of Schedule I (financial information) so small plans must file Schedule H if plan
does not qualify to file Form 5500-SF.
− More information to be reported on plan terminations, merger and consolidations (for
example, missing participants for terminated plans, uncashed checks for ongoing and
terminated plans).
− New information added about employer matching contributions, employee participation
rates, and plan design for defined contribution pension plans.
− Return of the Schedule E to improve information on Employee Stock Ownership Plans
(ESOPS), which was eliminated in 2009. The new version would include some questions
from the former Schedule E, revisions to other questions, additional new compliance
questions, as well as the ESOP specific questions currently on the Schedule R.

48
Modernize Data Collection and Usability
• The proposal would convert more elements of the Form 5500 into data or information that
is organized in a structured manner to make them computer-processable and identifiable
for data-mining and analytic purposes and to improve the quality of the data
− Schedule of Assets Held for Investment at End of Year, Schedule of Assets Disposed of Within Plan
Year, and Schedule of Reportable Transactions would be more standardized
− Must include a list of employers participating in the plan who are members of a controlled group of
corporation (currently this is only required for participating employers in multiple employer pension
and welfare benefit plans)
− Fewer attachments to Schedules A, G, SB and MB instead more questions would be included on
the form
− Plan characteristic code and other identifying codes replaced with Yes/No questions and
checkboxes. The IRS/DOL/PBGC has found plan sponsors make many errors in entering plan
characteristic codes
− Plans will be required to use legal entity and other industry and regulatory identifiers whenever
possible to help the agencies compare participation, investment option and investment performance
from year to year
− Plans would be required to include the name, address, EIN and telephone number of the plan’s
named fiduciary

49
Updating and Improving Reporting of Service Provider Fee and Expense
Information
• The proposal would better harmonize reporting on Form 5500 Schedule C with the DOL’s
service provider disclosure regulations (Section 2550.408b-2 regulations). The Schedule
C reporting requirements for employee benefit plans would also more closely track the
information that plan service providers are required to disclose to plan fiduciaries
− Will require reporting of indirect compensation for service providers and type of compensation
described in 408b-2 regulations
 Reporting thresholds correspond to 408b-2
 Report Service providers who get $1,000+ in direct compensation
 Report other service providers who get $5,000+ in indirect compensation only
 Eliminate the concept of eligible indirect compensation and require indirect compensation to be
reported as a dollar amount
− Large welfare plans that file Schedule C would follow 408b-2 definitions
− A separate Schedule C would be required for each service provider
− Report information about recordkeeping services
− The threshold for nonmonetary compensation to be reported would increase from $100 to $250
− Small pension plans not eligible to file the Form 5500-SF would complete Schedule C

50
Updating and Improving Reporting and Service Provider Fee and Expense
Information cont.
− Welfare benefit plans that offer group health benefits with fewer than 100 participants would be
required to complete Schedule C only if the welfare benefit plan is not unfunded, insured, or
combination of unfunded/insured
− DC pension plans would attach 404a-5 comparison chart to Schedule H/Form 5500-SF
− New question would be added to Schedule C which asks if the service providers receiving
compensation are fiduciaries
− Instructions for Schedule C would be clarified on reporting travel or educational expenses of plan
employees or trustees,, including reimbursement on both Schedules C and H
− Service providers who failed or refused to provide information about indirect compensation will be
deemed to satisfy the $1,000 threshold for reporting indirect compensation
− Question about the termination of the service provider on the Schedule C will be moved to the
Schedule H to associate it with new compliance questions added to the Schedule H.

51
Provide greater information regarding group health plans
• The proposal would change the Form 5500 filing requirements for small welfare benefit
plans (fewer than 100 participants) that are insured, self-funded, or combination of both.
In addition, the proposal would add a new Schedule J for compliance with the Affordable
Care Act.
− All ERISA covered welfare benefit plans regardless of size and regardless if the plan is funded with
a trust, unfunded (general assets of the plan sponsor), funded through insurance, or combination
unfunded and insured would be required to file a Form 5500.
− If the welfare benefit plans provide for group healthcare, the plan must also file a new Schedule J
(Group Health Plan Information). This reporting would extend to plans that claim grandfathered
status and retiree-only plans.
 New Schedule J (Group Health Plan Information) would report information about group health
plan operations and ERISA compliance, plus compliance with certain provisions of the
Affordable Care Act.
 Small fully insured group health plans would be required to answer only certain questions on
the Form 5500 and Schedule J
− Currently funded welfare benefit plans with fewer than 100 participants can file a Form 5500-SF
provided that they do not have a form M-1 requirement. The proposed change would eliminate the
exemption for small funded welfare benefit plans that provides group health care (regardless if they
do not have a Form M-1 requirement).

52
Provide greater information regarding group health plans cont.
− Group health plans with fewer than 100 participants that are not unfunded or insured or a
combination of both would be required to file the Form 5500 and applicable schedules instead of
the Form 5500-SF.
− Group health plans not required to complete Schedule H (generally, fully insured, unfunded plan, or
combination insured/unfunded plans), would be required to report information regarding employer
and participant contributions on the Schedule J.
− Group health plans that are part of the Group Insurance Arrangement (GIA) would not be required
include the Schedule J for the Form 5500 filing for the plan provided the sponsor filed a Form 5500
on behalf of the GIA. However, the sponsor of the GIA is required to include a Schedule J for the
Form 5500 fling for the GIA.
− The question on the Form 5500 which asks all welfare plans to report whether they are subject to
and if so, have completed the Form M-1 filing requirement would be move to the Schedule J.
However, Schedule J filers who are required to also file Form M-1 would not be required to answer
the compliance questions on Form M-1.

53
Improving Employee Benefit Plan General Compliance with ERISA and the
Code
• The proposal would also enhance reporting on plan compliance to improve plan
operations, protect participants and beneficiaries and their retirement benefits, and
educate and provide annual procedures for plan fiduciaries. The proposal would also add
selected new questions regarding plan operations, service provider relationships and
financial management of the plan
− New questions on investment alternatives (DIAs) and qualified default investment alternative
(QDIAs) in participant directed defined contribution plans
− New compliance questions about the plan audit (accountant’s opinion)
− New question regarding whether the plan sponsor was paid any administrative expenses from the
plan that were not reported on the Form 5500 filing
− New questions would be added which asked if any person disqualified under Section 411 of ERISA
served or was permitted to serve the plan in any capacity.
− New line items on the Schedule A would be added which ask if any premium payments were
overdue and the amount delinquent, how many days the insurance policy lapsed, if there was a
policy or contract reported on the Schedule A that was issued by an insurance company wholly
owned by the plan or the plan sponsor, etc.
− A trustee’s signature would be added to the trustee information section of Schedule H and Form
5500-SF.

54
• Other proposed changes
− Expanded participant count questions:
 Total number of participants that contributed to the plan during the plan year
 Total number of participants that terminated and received 100% of their benefit during the plan year
 Total number of participants with account balances as of the beginning of the plan year
− Defined contribution pension plans would be allowed to only count active participants who
benefit under the plan and exclude active employees who are merely eligible to participate
in the plan but not benefitting under the plan in determining if the plan would require an
audit by an independent qualified public accountant
− Filers would be able to file the Form 5500-EZ (Annual Return of One-Participant (Owners
and Their Spouses) Retirement Plan) electronically instead of filing Form 5500-SF which
must be filed electronically
 IRS will provide an electronic version of the Form 5500-EZ to be filed on the DOL’s EFAST2 system.
 The electronic version of the form 5500-EZ will be in addition to the paper version
 Similar to the Form 5500-SF filed electronically with the DOL, the electronic version of the form 5500-
EZ will not be posted on the DOL’s website.

55
• Other proposed changes cont.
− Filers would be able to electronically file the Form 5558 (Application for Extension of Time to
File Certain Employee Plan Returns)
 Can only file Form 5558 electronically to extend the filing deadline for Forms 5500 and 8955-SSA
 Cannot file Form 5558 electronically to extend the filing deadline for Form 5330. Extension request
for Form 5330 must be filed by paper only. The IRS would create a new paper extension form for
extensions of time to file the Form 5330, which would be similar to the Form 5558, but will only apply
to Form 5330

56
Public Comments
• DOL requested comments to the proposed changes by October 4, 2016, which
was later extended to December 5, 2016
• The DOL received 200 comments to the proposed changes
https://www.dol.gov/agencies/ebsa/laws-and-regulations/rules-and-
regulations/public-comments/1210-AB63
− Many plan sponsors/plan administrators, service providers, employee benefits and
business organizations, state and federal legislatures, and government agencies
commented on the financial burdens of the excessive amount of additional reporting

57
Status of Proposed Form 5500
Changes
• On January 30, 2017, President Trump issued an Executive Order to reduce
regulations and control regulatory costs, which indicated that for every one
regulation issued, at least two prior regulations be identified for elimination.
− It is uncertain whether the proposed changes to the Form 5500
filing for the 2019 plan year would be eliminated totally or partially

58
Questions
Mary Miller
Senior Consultant, Compliance Consulting Center
Conduent HR Consulting, LLC
420 Lexington Avenue, Suite 2220
New York, NY 10170-2220
Tel: (212) 330-1219
Cell: (917) 687-3870
Email: Mary.Miller@conduent.com

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