Compliance September 19, 2011

DoL Introduces Form 5500 Version Selection Tool

The U.S. Department of Labor has released the Form 5500 Version Selection Tool to help plan sponsors determine which version of the form to use and which schedule they should use.
Reported by

The DoL said that with the change to an entirely electronic filing system, plus changes to the Form 5500, plan sponsor could use some extra guidance.

The DoL outlined four steps to use this tool: 

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

  • In the plan filing field, enter the first day of the plan year for which you want to file. For Direct Filing Entity (DFE) filings, enter the last day of the plan year for which you want to file. The date should be entered in the mm/dd/yyyy format. 
  • If you are amending a previously filed Form 5500, check the box. 
  • If your plan is a Code 403(b) arrangement or if you are filing for a DFE, other than a Group Insurance Arrangement (GIA), check the appropriate box. If neither applies to your plan, leave the boxes unmarked. 
  • Select the get results box. A general description of what you are required to file will be displayed. The form year(s) that are available for you to file will be displayed in bold. If there are any prior year schedules that must be attached, they will be listed in the “Exceptions”. Any prior year schedules must be attached as a PDF file and are generally available at both www.efast.dol.gov and www.irs.gov. 

The DoL noted that the tool will not provide detailed instructions specific to a plan’s filing requirements.   

The tool is available at http://askebsa.dol.gov/FormSelector/.
Compliance September 19, 2011

Early Praise for EBSA’s Decision to Re-Propose Fiduciary Definition

Industry professionals, associations, and lawmakers are applauding the Labor Department’s decision to reevaluate its proposed changes to the definition of a fiduciary.
Reported by

Hours after the Employee Benefits Security Administration (EBSA) announced that it will be reissuing a proposal to update the definition of fiduciary, industry leaders began to express their approval (see “EBSA to Re-Propose Definition of Fiduciary Rule”).

Bradford Campbell, former head of EBSA from 2006 to 2009 and currently with Schiff Hardin LLP, said he is “very pleased” with today’s announcement.  “Rushing to a final rule would have been bad regulatory process, embroiling the Department in extensive litigation.  The bottom line is that DOL has not made the case for its original proposal.  The bipartisan calls to repropose the rule reflect this reality. The burden is on the Department to justify its efforts to fundamentally change the rules governing trillions of dollars of workers’ savings, and I applaud Assistant Secretary Borzi for her decision,” he said in a statement.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The Securities Industry and Financial Markets Association (SIFMA) also issued a statement approving of EBSA’s action: “Since the beginning, we have raised significant concerns about the proposal and lack of cost-benefit analysis on a rule that would affect millions of IRA holders and plan participants. We appreciate the Department’s announcement that they indeed will conduct further economic analysis and make changes that will be included in the new proposed rule.”

The Financial Services Institute (FSI) saw the announcement as a victory: “The rule, as proposed, would have serious negative consequences for Main Street Americans in need of retirement advice. This is a major victory for… millions of hard-working Americans who need affordable, unbiased financial advice.”

Lawmakers also weighed in on the announcement. Senator Tom Harkin (D-Iowa), Chairman of the Senate Health, Education, Labor and Pensions Committee (HELP), and Representative George Miller (CA-7), Ranking Member of the House Education and Workforce Committee, applauded the decision to issue a new proposal as well, but also said the DoL must move forward: “[T]he simple fact is that bad investment advice threatens the retirement security of middle class Americans. The Department deserves a lot of credit for its efforts to hold advisers to the fiduciary standard Congress intended while taking into consideration the realities of a mature retirement industry. We urge the Department to move forward without delay on reproposal that will provide significantly increased protections for Americans concerned over their retirement security while being both practical and easy to manage.”

In its announcement, EBSA said a new proposal won’t be issued until 2012.   

«