On Nov. 16, 2007, the Department of Labor (DOL), IRS and Pension Benefit Guaranty Corporation (PBGC) published final annual reporting regulations regarding the new electronic filing requirements for Form 5500. Beginning with the 2009 plan year, the DOL requires retirement plans and welfare plans to file their annual reports (Form 5500) electronically using their EFAST2 system. The transformation from paper filing to electronic filing will result in significant changes in procedures.
The EFAST2 system is effective for plan years beginning on or after Jan. 1, 2009. Plans will be able to commence filing electronically on Jan. 1, 2010. Any plan which has a 5500 due before Jan. 1, 2010 will have an automatic extension until 90 days following the date on which the Form 5500 is available for filing electronically. The date is March 31, 2010, unless the DOL changes the date on which electronic filing will be available.
Must all retirement plans file electronically?
With the exception of a plan covering the sole owner (and his/her spouse) or partners in a partnership (and their spouses) and no employees (“owner only plan”), all plans, including retirement, welfare and 403(b) plans, will need to file their 5500s electronically. Owner only plans will file a paper copy of the 5500-EZ with the IRS. However, owner only plans that do not hold employer stock or real estate may elect to file a Form 5500-SF (short form) electronically with the DOL.
How does a plan sponsor obtain electronic signature credentials?
To file electronically, a plan sponsor must obtain electronic signature credentials. The plan sponsor will go to a DOL website (IREG) and enter certain personal information. The IREG website will be available on Jan. 1, 2010. The plan sponsor then will receive an email with a link to a website where he or she will receive the credentials (signer ID and PIN code). The credentials are personal to the individual obtaining the credentials. If a plan sponsor grants signature authority to several of its officers, each officer will need to obtain his/her own credentials in order to sign the Form 5500.
May a Third Party Administration firm or financial institution obtain signer credentials on behalf of its clients?
No. Every individual who signs a Form 5500 or schedule must obtain his/her own signer credentials. Furthermore, the government limits one set of credentials per email address. When an individual obtains his/her signer credentials, the individual must certify to the government that he/she will not share the credentials with anyone, including a TPA or financial institution. |