Form 5500 User Guide - Empower Retirement · During the audit process, the auditor will prepare an Accountant’s Opinion which must be attached and included with the Form 5500 filing

2/14/2013Form 5500 User Guide Rev. 2/14/2013 Page 1 of 1

Form 5500 User Guide

Table of Contents

I. General 5500 Instructions II. Form 5500 Electronic Filing

a. Obtaining Credentials b. Retrieving Existing Credentials c. Electronic Filing Instructions d. Instructions for Filing Form 8955-SSA

III. Schedule C Guidance IV. Requirements for ERISA 403(b) Plans V. Viewing and Printing Prior Year Filings

VI. Complete User Guide

General 5500 Instructions Rev. 12/6/2012 Page 1 of 2

General 5500 Instructions

This section contains a brief review of the Form 5500 Annual Return/Report including related schedules applicable to plans required to File Form 5500. Form 5500 Annual Return/Report of Employee Benefit Plan

The Form 5500 is filed annually which reports information to the Department of Labor (DOL) on the plan sponsor, plan provisions and participant counts. Large plan filers and certain small plan filers will file Form 5500 including applicable schedules. Large Or Small Plan Filer If your plan had 100 or more eligible participants* (this includes active employees who are eligible to participate and terminated employees with account balances) on the first day of the plan year, your plan is considered a large plan filer. Large plan filers have additional filing requirements including the completion of Schedule H (Financial Information), engaging an independent auditor to conduct an audit of the plan and filing the audit report along with the Form 5500 filing. Large plan filers may also be required to file Schedule C (Service Provider Information). If your plan had less than 100 eligible participants (this includes active employees who are eligible to participate and terminated employees with account balances) on the first day of the plan year, your plan is considered a small plan filer. Small plan filers are allowed to file a more abbreviated Form 5500 filing. Most small plan filers will qualify to file the Form 5500-SF (Short Form Annual Return /Report of Small Employee Benefit Plan) which consists only of the Form 5500-SF; in which no schedules are required to be filed. Some small plan filers may not qualify to file using the Form 5500-SF and will be required to file the regular Form 5500 along with applicable schedules. *The Department of Labor (DOL) definition of "Participant" means any individual who is included in one of the following categories:

• Active participants include any individuals who are currently in employment covered by a plan and who are earning or retaining credited service under a plan. This category includes any individuals who are eligible to elect to defer compensation for the employer to make payments to a Code Section 401(k) or 403(b) plan. Active participants also include any non-vested individuals who are earning or retaining credited service under a plan.

• Retired or separated participants receiving benefits. • Other retired or separated participants entitled to future benefits. • Deceased individuals who had one or more beneficiaries who are receiving or are entitled

to receive benefits under the plan. This category does not include the following:

• Non-vested former employees who have incurred the break in service period specified in the plan or

• Former employees who have received a "cash-out" distribution or deemed distribution of their entire non-forfeitable accrued benefit.

Form 5500-SF Short Form Annual Return/Report of Small Employee Benefit Plan The Form 5500-SF is filed for certain small plans with less than 100 eligible participants at the beginning of the plan year. Plans eligible to file the Form 5500-SF will benefit from abbreviated reporting that includes only filing only the Form 5500-SF. No schedules are required to be filed with this type of filing.

General 5500 Instructions Rev. 12/6/2012 Page 2 of 2

Form 5558 Application for Extension of Time Your IRS Form 5500 Annual Report is due to the IRS by the last day of the 7th month following the plan year-end (July 31 for calendar year plans), unless you file Form 5558 ‘Application for Extension of Time’, to extend the filing deadline. An extension allows an additional 2 ½ months (October 15 for calendar year plans) beyond the deadline. Supplemental Schedules Schedule A Insurance Information The Schedule A is required to be filed for all plans with benefits provided by an insurance carrier. This form reports any commission or fee compensation paid to brokers or advisors during the plan year and includes asset balance reporting on any annuity or general account assets held inside an insurance contract. Schedule C Service Provider Information The Schedule C is required to be filed for large plan filers (generally over 100 participants) in which one or more service providers received $5,000 or more in direct or indirect fee compensation or their fee disclosures reported fee compensation in a formula format. A second purpose for filing Schedule C is to report information if a large plan filer has terminated an accountant or actuary Schedule D DFE/Participating Plan Information The Schedule D is required to be filed for all plans holding assets that include Pooled Separate Accounts (PSA), Common Collective Trusts (CCT), Master Trusts (MTIA) and 103-12e’s. This form reports the type of asset, sponsor of the asset and the dollar amount invested at plan year-end. Schedule H Financial Information (Large plan filers) Schedule H provides the financial information for large plan filers including contributions, earnings, distributions and fee expenses. In addition, there is information on the independent audit and transaction activity during the plan year. The required audit (for large plan filings) performed by the independent auditor and the auditor’s opinion must be attached to the filing when a Schedule H is filed. Schedule I Financial Information (Small plan filers) Schedule I provides the financial information for small plan filers that are not eligible to file a Form 5500-SF including contributions, earnings distributions and fee expenses. The plan is not required to complete an audit (assuming 95% or more of the assets in the plan are qualifying assets). Schedule R Retirement Plan Information For defined contribution plans, the Schedule R reports certain information on plan distributions and minimum funding requirements for money purchase plans. Schedule R is only filed if the plan paid out distributions during the plan year or was a money purchase plan subject to minimum funding requirements.

Form 8955-SSA Reporting Separated Participants

Form 8955-SSA identifies terminated participants with deferred vested benefits payable from a retirement plan. In addition to reporting accrued benefits, the form is also used to report participants that previously had an accrued balance and were paid out during the plan year.

Form 5500 Electronic Filing Rev. 4/22/2015 Page 1 of 1

Form 5500 Electronic Filing This section contains information on the following topics: Obtaining Credentials Due to mandatory electronic filing for the Form 5500, you must obtain Credentials (an electronic signature) in order to file your Form 5500 with the Department of Labor (DOL). This section provides instructions on how to order your Credentials (electronic signature) from the DOL. Retrieving Existing Credentials If you have already created credentials this section will provide instructions for retrieving them from the DOL website. Auditor Attachments For large plan filers only (generally plans with 100 or more eligible participants). Large plan filers must have an annual independent audit performed for their plan. During the audit process, the auditor will prepare an Accountant’s Opinion which must be attached and included with the Form 5500 filing when filed electronically with the DOL. This section provides instructions, once the plan sponsor has received an electronic copy of the Accountant’s Opinion (pdf format) on how to attach the opinion so it is filed electronically with the Form 5500 filing Electronic Filing Checklist All Form 5500 filings must be filed electronically instead of mailing a printed copy to the DOL. This section provides instructions on how plan sponsors may review the Form 5500 filing, and how to use their Credentials to file the Form 5500 and related schedules electronically to the DOL. Instructions for Filing Form 8955-SSA This form is not part of the Form 5500 filing and is filed separately with the Internal Revenue Service (IRS). This form will be electronically filed on your behalf. This section provides instructions on how to review and print the Form 8955-SSA.

Register

Form 5500 Electronic Filing Requirements Instructions for Obtaining Electronic Signature Credentials

The U.S. Department of Labor (DOL) requires retirement plans to file the Form 5500 electronically through the ERISA Filing Acceptance System (EFAST2). Paper filing of a Form 5500 will not be accepted. We prepare your plan’s Form 5500 filing as part of our compliance services, but we cannot sign the filing on your behalf. Your signature as Plan Sponsor and/or Plan Administrator is still required, but signing of the forms must be done electronically. Each authorized person responsible for signing your Form 5500 must apply for Electronic Signature Credentials on the DOL’s EFAST2 website. We recommend that you register for your Electronic Signature Credential in advance to avoid any delay in meeting the filing deadlines. Once we prepare your Form 5500, we will provide you detailed instructions on how to file electronically through the Plan Service Center (PSC) using your Electronic Signature Credentials. Simply follow these easy steps in obtaining your Electronic Signature Credentials:

• Log on to DOL EFAST2 Website • Provide Profile Information • Verify and Accept PIN Agreement • Receive and Retain Credentials

How to get started: 1) Log on to DOL EFAST2 Website Go to www.efast.dol.gov .To begin click on

Read and accept the Privacy Statement to continue.

2) Provide Profile Information Complete all asterisked (*) fields in the Profile Information. Please note for E-mail address: Each registrant will receive a confidential UserID and PIN via the e-mail provided; therefore it is suggested that you not use a general company e-mail address. The DOL requires a separate and valid e-mail address for each applicant.

Please note for User Type: You should choose ‘Filing Signer’ as your user type. The remaining user choices do not apply to your profile setup as a signer of the Form 5500. Click The Challenge Information is required for security purposes. Complete the challenge question and answer. You will need to remember your challenge answer since this will be required to complete the profile setup. 3) Verify and Accept PIN Agreement Once you have completed the profile information, you will be sent an e-mail with detailed instructions on where and how to retrieve your UserID and PIN. Read and click the link provided in the e-mail to finish the PIN application process. Complete the Challenge Question Verification by entering your challenge answer from Step 2 and click to continue.

Problems with EFAST2? Contact the EFAST2 Help Line at 1-866-GO-EFAST (1-866-463-3278) if you have any problems with the registration process or if your user information becomes lost or stolen.

You will then be presented with a PIN Agreement. Read and accept this agreement to continue.

Following the PIN Agreement, you will need to read and accept the Signature Agreement.

4) Receive and Retain Credentials You will then need to create a Password. Requirements: between 8 and 16 characters; at least one uppercase alpha character; at least one lowercase alpha character; at least one numeric character; at least one of the following special characters [!, @, #, $, %, ^, &, *, (, )]. Click to finish the registration process. Finally, you will receive Confirmation that the registration process is complete along with a summary of your profile information. This summary will provide you with a personal UserID and PIN. Print or copy this information and keep on file. After retaining the information, click to continue. Your Signature Credentials are now ready to use for electronic filing of your Form 5500.

Helpful Hints: You are responsible for maintaining your UserID, PIN, and Password. Keep them in a safe secure place. Your User ID and PIN are equivalent to your physical signature. This information should not be shared. You only need to apply once for EFAST2 Signature Credentials. They will remain active unless they are

unused for 3 consecutive years. Your signature credentials are not transferable. You are able to use the same UserID and PIN to sign for more than one Form 5500 filing. You cannot change your UserID. You are able to change your PIN, Password, or profile information by

logging into your account at www.efast.dol.gov then click on “User Profile”.

Instructions for Retrieving Existing Electronic Signature Credentials from EFAST2

You may have registered for filing credentials, but have misplaced or no longer have these credentials since the last time these credentials were used. The following instructions apply if you previously registered for credentials and need to retrieve them for filing purposes. Our submission software will store credential information for the last filing signor. However, if your company is using a different signor who previously registered and needs his credentials, then you may use the following instructions to retrieve those credentials. The two items you will need in order to file your 5500 are your User ID (begins with “A” followed by a seven-digit number) and your four-digit PIN. However, you will need your User ID and Password in order to retrieve your PIN. The following workflow will show you how to retrieve your User ID, Password and PIN. To begin, log on to the Department of Labor EFAST2 Website. Go to www.efast.dol.gov. Select [Login]. The login box below will appear on your screen.

Retrieving Your User ID If you know your User ID, proceed to the next section. If you do not know your User ID, select [Forgot User ID] from the bottom left corner of the yellow Login box (see previous screen print).

You will be prompted to enter your email address. This should be the email address you provided when you initially registered for filing credentials. Enter your email address, and then select [Submit]. Complete the Challenge Question Verification by entering your challenge answer. Then select [Submit]. Retrieving Your Password If you know your password, proceed to the next section. If you do not know what your Password is, go back to the Login screen and select [Forgot Password].

The screen print below will appear. Enter either your User ID or your email address. Select [Next]. Complete the Challenge Question Verification by entering your challenge answer. Then select [Submit]. You will be prompted to create a new password. Requirements: between 8 and 16 characters; at least one uppercase alpha character; at least one lowercase alpha character; at least one numeric character; at least one of the following special characters [!, @, #, $, %, ^, &, *, (, )]. Enter it twice to verify your password. Select [Save]. Retrieving Your PIN Now that you have your User ID and Password, you may log in to retrieve your PIN. If you are missing either your User ID or Password, see the applicable section above. Login using your User ID and Password. If you have not used your filing credentials since filing

your previous 5500, then your Password may have expired. You will be prompted to update your Password. See screen print below. Follow the prompts in the yellow box. Enter your Current Password. Then enter your New Password. Confirm your New Password by entering it a second time. Be sure to read and follow the Password Requirements provided. You will see a “Register-Confirmation” when your password reset is complete. Select [Login]. Log in using your User ID and new Password. When you have logged in successfully, select “User Profile” from the left side of your screen under the “Main” heading. Your “User Profile” screen will contain your four-digit PIN. See example below.

Customizing Your PIN If you want to customize your four-digit PIN you may do so from the User Profit Screen. To do this select [Change PIN] which is located at the bottom of the User Profile screen. Type in your new PIN then select [Submit] to execute.

Problems with EFAST2? Contact the EFAST2 Help Line at 1-866-GO-EFAST (1-866-463-3278) if you have any problems with the registration process or if your user information becomes lost or stolen.

Helpful Hints You are responsible for maintaining your User ID, PIN, and Password. Keep them in a safe and secure place. Your User ID and PIN are equivalent to your physical signature. This information should not be shared. You only need to apply once for EFAST2 Signature Credentials. They will remain active unless they are

unused for 3 consecutive years. Your signature credentials are not transferable. You are not able to user the same User ID and PIN to sign for more than one Form 5500 filing in any given

plan year. You cannot change your User ID. You are able to change your PIN, Password, or profile information by

logging into your account at www.efast.dol.gov then clicking on “User Profile.”

Form 5500 Electronic Filing Requirements:

Instructions for Filing Form 5500 Electronically The following instructions reference Form 5500 however this term is used interchangeably for both Form 5500-Annual Return (including schedules and attachments) and the Form 5500SF-Short Form Annual Return (no schedules).

To electronically file your Form 5500 to the U.S. Department of Labor’s (DOL) Employee Benefit Security Administration (EBSA) from the Plan Service Center (PSC) Website simply follow these easy steps:

• Review Form 5500 and Related Schedules • Attach Applicable Reports (Generally for

large plan filings) • Print and Retain a Signed Copy for Your

Records • Electronically Sign and Submit Filing to the

DOL • Check Filing Status How to get started filing from the Plan Service Center: • Go to the Compliance Tab of the PSC • Locate the applicable plan year you are filing • Click on ’Available’ on the far right • Choose ‘Form 5500 E-File’ • Small filers Click ‘Print and Sign’ and then

skip to Step 7 (below) • Large filers Click ‘Fill in Selected Fields’ to

complete attachments and continue to Step 1

1. Obtain the applicable attachment in PDF

format. All attachments will need to be added to your E-Filing.

2. Select “Upload Attachments”

3. Select the file to attach by clicking “Browse"

4. Click “Return to Edit 5500” once all the

attachments have been successfully attached. This will take you back to the previous page.

5. Click on ‘I’m Done’ to continue.

6. Once all attachments are successfully

attached click “Confirm I’m Done” to continue to the signing page.

7. The 5500 must be printed prior to filing. Click

‘Print 5500’

8. Unless this is the first year filing the Administrator’s Name will be populated with the individual who signed the prior year’s filing.

9. If the Administrator/Sponsor name is blank or

is not the individual that will sign the filing for the current year click on ‘Change Name’

10. Once the 5500 has been printed the

credentials field will be unlocked. Enter the DOL User ID and PIN number for the Administrator/Sponsor listed.

HELPFUL HINTS: If you have not yet registered for Electronic Signature Credentials, please refer to ‘Instructions on Obtaining Electronic Signature Credentials’ in the Compliance User Guide. If you already obtained your Electronic Signature Credentials, you do not need to register again. Use the same credentials to electronically sign subsequent years Form 5500. Each signor will require his or her own individual signature credentials. Signature credentials for signing a filing: 1) User-ID = 8 digits starting with a capital ‘A’ 2) PIN = 4 digit number

11. Click on ‘Sign 5500’ to submit the filing to the

DOL.

12. It is very important to verify the electronic

filing was successfully submitted and accepted by the EFAST system. Click on ‘Check 5500 Status’ to see the Filing Status and to obtain the Acknowledgement ID for your records.

13. A filing will fall under one of three categories:

Accepted = Successfully Filed Rejected = Not Filed Not Accepted = Filed but with Errors

14. Print and Retain a copy of the AckID. If filings containing errors are not rectified by the filing deadline, the filing could be subject to rejection and penalties from the DOL. Filings that are not successfully received by EFAST must be resubmitted Any filings that are received with errors and/or warnings may be amended through the amendment process. It is suggested to file your Form 5500 at least 48 hours prior to the filing deadline to allow extra time if there are unexpected problems relating to a high volume of forms being filed close to the deadline or other system issues.

Form 5500 Electronic Filing Rev. 04/22/15 Instructions for Filing Form 8955-SSA Page 1 of 1

Instructions for Filing Form 8955-SSA Final Regulations issued by the Internal Revenue Service generally require filers who have to file at least 250 returns with the IRS during the calendar year to file Form 8955-SSA electronically. For plan years beginning January 1, 2014, we have enhanced our service and will be filing the Form 8955-SSA electronically on your behalf. The Form 8955-SSA will be prepared and posted to the PSC website in the Form 5500 section of the Compliance tab. You will need to print and sign a copy for your records. The deadline for filing Form 8955-SSA is the same filing deadline (or extend filing deadline) as the Form 5500. Filing deadlines are 7 months or if on extension, 9 1/2 months following the plan year-end.

Schedule C Guidance Rev. 12/6/2012 Page 1 of 5

Schedule C Guidance Plans required to file Form 5500 Schedule C

If your plan had 100 or more eligible participants (this includes active employees who are eligible to participate and terminated employees with account balances) on the first day of the plan year, your plan is considered a large plan filer and will generally be required to file an IRS Schedule H, with the following exception:

• If the plan filed as a small filer last year (Form 5500-SF or Schedule I) and the plan covered fewer than 121 participants on the first day of the current plan year, the Form 5500-SF or Schedule I may be completed instead of a Schedule H and the Form 5500 filing would continue to file as a small plan filer.

If your plan has less than 100 participants at the beginning of the plan year or your plan meets the above exception, your plan is considered a small plan filer and would not need to file a Schedule C or gather fee compensation information needed for the Schedule C filing and therefore may disregard the following information.

Background: The Department of Labor (DOL) has implemented new reporting requirements on Form 5500 Schedule C relating to plan fees/compensation. This is effective for plan years beginning in 2009 and is required for all large plan filers. It is the responsibility of the Plan Sponsor (or named Plan Administrator) to request and collect the fee/compensation information from all applicable Service Providers associated with the plan including Service Providers associated with individual participants’ Self Directed Brokerage Accounts. There are a series of questions in the Year End Questionnaire that are designed to assist you in the collection of this information and for ensuring timely and accurate reporting on the Schedule C. Fee Disclosure Information We Track and Report As your provider we can track and report your plan’s Direct Compensation and Indirect Compensation including fees for administrative, record-keeping, compliance, plan document maintenance and for indirect compensation for all investment funds we hold and report, on your annual summary. You will NOT need to provide fee compensation information related to these services. Fee Disclosure Information You May Need to Provide to Us There are three areas in which you may need to provide us fee disclosure information relating to Direct and Indirect Compensation received by outside service providers for your plan so that we can include this information on the Form 5500 Schedule C filing. If any of the following three scenarios apply for the current plan year, you will need to provide the fee disclosure information you received from these providers to us through the Year-End Questionnaire. There are a series of questions in our Year-End Questionnaire that will assist you in providing this information to us.

• Broker or advisor • Prior carrier - your plan transferred from a another carrier during this plan year • Outside assets – one or more plan assets are held by an outside carrier

To assist you in understanding the questions and terminology used in the Year-End Questionnaire, we have provided a glossary of terms below. Many of these definitions can also be accessed through links in the Year-end Questionnaire.


Definitions: Indirect Compensation: Compensation received from sources other than directly from the plan or Plan Sponsor for services rendered to the plan during the plan year. Includes fees and expense payments received by a person from mutual funds, bank commingled trusts, insurance company pooled separate accounts, and other managed separate accounts / pooled investment accounts in which the plan invests and that are charged against the fund / account and reflected in the value of the plan's investments. Also included is Non-Monetary Compensation, such as free meals, transportation, hotel accommodation and seminar / conference attendance. Examples: management fees paid by a mutual fund to its investment advisors, sub-transfer agency fees, shareholder servicing fees, account maintenance fees and 12b-1 distribution fees. Other examples include finder's fees, float revenue, brokerage commissions, research and other products / services received from a broker or third party in connection with security transactions (soft dollars), and other transactions based fees received in connection with transactions / services involving the plan. Special rules apply to non-monetary compensation such as gifts and meals. Eligible Indirect Compensation: This is Indirect Compensation (see definition above) that in order to be classified and reported as Eligible Indirect Compensation, the plan sponsor must have received written materials that disclose and describe the following:

• The existence of the indirect compensation • The services provided for the indirect compensation or the purpose of the

payment of indirect compensation • The actual dollar amount, estimated dollar amount or a description of the formula

used to calculate or determine the compensation • The identity of the party paying and receiving the compensation.

For indirect compensation to be eligible to be reported as Eligible Indirect Compensation, the disclosures should include language indicating: that the written disclosures are intended to meet the Form 5500 Schedule C requirements for reporting as Eligible Indirect Compensation. Disclosures: These are written documents that may be provided by service providers and would include materials that disclose and describe the existence of Indirect Compensation and the services provided or purpose of the payment. The disclosure will also provide details of the amount of compensation, actual dollar amount, estimated dollar amount or a description of the formula used to determine the compensation and the identity of the party or parties paying and receiving the compensation.

Direct Compensation: This is fee compensation paid directly out of plan assets including charges to the plan forfeiture / fee recapture accounts, charges to a plan's trust account before allocations are made to individual participant accounts and direct charges to participant's individual plan accounts. Payments made by the Plan Sponsor to the Service Provider which are not reimbursed by the plan are NOT included for this reporting purpose. Service/Fee Codes: The DOL has provided has provided a list of codes that describe the services provided and compensation received. Enter as many codes necessary that apply to the Service Provider in question. Click on the Services Fee Code box for a listing of the service codes. Person Providing Disclosures: The person or organization that provided the plan the written disclosures on fee compensation.


Relationship to Employer, Employee Organization or Party-in-Interest: Enter any relationship of the Service Provider identified to the Plan Sponsor, to the participating Employee or Employer Organization , or to any person known to be a party-in-interest (e.g., employee of employer, vice-president of employer, affiliate of plan record-keeper, etc.). Select ‘none’ if there is no relationship. Service Provider: This is the name of the person or organization providing a service to the plan who received the compensation relating to services provided to the plan. (For Eligible Indirect Compensation, enter the name of the person who provided the required disclosures on behalf of the Service Provider). To assist you in determining who might be considered a service provider, please remember that any person or organization that provides a service to the plan in exchange for fee compensation would be considered a Service Provider for purpose of reporting on the Schedule C. Fee compensation for Service Providers that you may need to report on the Year-end Questionnaire may include (but are not limited to this list): accounting including auditing, contract administrator, record-keeping Services, consulting, custodial, trustee, insurance, investment management, sales loads, brokerage services, shareholder services, insurance, investment advisory, legal, participant loan and/or communications, commissions, investment company/mutual fund, distributions, account maintenance, or any other service provider fees. Service Provider Address: This is the address of the Service Provider (or person) who received the compensation relating to services provided to the plan. (For Eligible Indirect Compensation, enter the address of the person who provided the required disclosures on behalf of the Service Provider). Service Provider EIN: This is the Employer Identification Number of the Service Provider (or person) who received the compensation relating to services provided to the plan. (For Eligible Indirect Compensation, enter the name of the person who provided the required disclosures on behalf of the Service Provider). Note: Do not use the person’s Social Security Number in lieu of an EIN due to privacy concerns. If a person does not have an EIN (e.g. self employed) the person’s address is sufficient Source Name: The name of the company / person who paid the Indirect Compensation to the Service Provider. Source Address: The address of the company / person who paid the Indirect Compensation to the Service Provider. Source EIN: The Employer Identification Number of the company / person who paid the Indirect Compensation to the Service Provider. NOTE: Do not use the person's Social Security Number in lieu of an EIN because of privacy concerns. If a person does not have an EIN (e.g., self-employed), the person's address is sufficient. Formula/Description of Indirect Compensation: Describe the Indirect Compensation, including any formula, used to determine the Service Provider's eligibility for or the amount of the Indirect Compensation. Failure/Refusal to Provide Information: Indicate Yes or No if the Service Provider failed or refused to provide any of the required fee / compensation information to complete the Form 5500 Schedule C. Before responding No, please be sure you have given the service provider an opportunity to provide disclosure information on the fee compensation they have received in connection to services provided to your plan. While most providers will provide disclosures, there are a number of reasons why a plan sponsor may not have received a fee compensation disclosure. If you have not received fee disclosure information, please request that information from the service provider. We have provided guidance below on how to request this information.


A failure to satisfy the reporting requirements may result in a prohibited transaction under ERISA with the potential for an excise tax on the amount of compensation involved. This can be a significant issue to both the Plan and the Service Provider and should be not be taken lightly. If the plan sponsor believes they should have received a disclosure but may have not received one, the plan administrator should request a fee disclosure from the service provider. A request should be made in writing to each Service Provider for the required compensation information. The request should include a statement that they will be listed on the Schedule C as a Service Provider who failed to provide fee compensation disclosures.

• If the Service Provider fails to provide the requested information within a reasonable time

fame (generally 90 days of the written request), the plan fiduciary should deem the Service Provider to have failed to comply with the request for the required information.

• Immediately contact your tax or legal advisor for more information or specific guidance.

• Indicate on the Year End Fee / Compensation Questionnaire that the Service Provider

failed or refused to provide the required information, and should be reported as such on Schedule C.

Helpful Hints Data Collection from Service Providers The following are suggestions to assist you in the requesting and collection of the compensation data from your plan advisors needed to meet the new Form 5500 Schedule C reporting requirements. 1) Identify All Plan Service Providers: Review your records to identify all parties who are / have provided services to your plan during the reporting year. This would generally include such providers as:

• Investment advisors you have hired to manage or advise you (or the participants) on the plan's investments

• For each participant with self-directed investment accounts, the broker or investment advisor associated with that account

• Trustee / Custodian • Plan Recordkeeper • Preparer of Form 5500 (may be same as Plan Recordkeeper) • Compliance Testing (may be same as Plan Recordkeeper) • Legal • Accounting / Auditing • Actuarial • Other Consultants hired to provide services to the plan

Please review the Service Codes tab for a complete list of possible service providers as provided in the Department of Labor's instructions. 2) Written Request for Compensation Information: For your protection, you should make a written request to all identified service providers for the required compensation information. This should be done prior to the end of the plan's reporting year, so as to give the service providers time to begin collecting the required data. Be sure to include a deadline for the provider to return the requested information (generally no later than 90 days following the plan year end), as well as


a statement indicating that you will report them on Schedule C as a service provider who has failed or refused to provide the required compensation information needed to complete Schedule C if they do not comply by the stated deadline. 3) Items to include with the Written Request: You may wish to print off and include the following items from this document to help the advisor understand the required information to be provided.

• Background and key terms section from the Compliance User Guide • Service Codes

4) Direct Fees (Compensation) Paid from Plan Assets: Neither you or the service providers will need to provide the amount of any fees that were paid from plan assets. Those amounts will be identified from the existing records by the Plan Recordkeeper. However, you may need to provide information relating to the service provider or the nature of the fee type if not on record. 5) Investment-Related Compensation: The plan's investment advisor(s) should be made aware of the types of compensation that are required to be reported on Schedule C, including:

• Investment Advisory / Management Fees paid directly from Plan Assets • Brokerage Commissions • Insurance Commissions • Sales Loads (Front End and Deferred) • Sub-Transfer Fees • 12b-1 Distribution Fees • Finders Fees / Placement Fees • Mutual Fund Operating Expenses (obtain from Fund Companies) • Non-Monetary Compensation (free meals, transportation, hotel accommodation, seminar

/ conference attendance)

6) Follow Up: At some predetermined time prior to the stated deadline, you should follow up with each service provider as to the status of the required information to be provided and estimated time of delivery. Ideally, follow ups should be done in writing. REMINDER - Form 5500 and related schedules cannot be finalized until all service provider / compensation data needed for the Schedule C is received. 7) Failure / Refusal to Provide Compensation Data: Should a service provider fail or refuse to provide the requested information, there are two options available to you.

• Obtain a "good faith" statement from the advisor. For the 2009 Plan Year ONLY, the Department of Labor has indicated the Plan Administrator is not required to report service providers as having failed to provide the required information if the service provider has provided a statement stating that it made a good faith effort to make recordkeeping / information system changes in a timely fashion but, despite such efforts, the service provider was unable to complete the system changes for the 2009 Plan Year.

• Authorize the preparer of the Form 5500 to report the advisor as having failed / refused to provide the required information.

8) Record Retention: For your protection be sure to keep copies of all written requests, follow ups and other communications for your records.

Requirements for ERISA 403(b) Plans Beginning with plan years starting in 2009, ERISA 403(b) plans will be subject to the following: Form 5500 - General Reporting Requirements Regulatory changes require all ERISA 403(b) plans to file expanded 5500 packages to the Internal Revenue Service (IRS) and Department of Labor (DOL). ERISA 403(b) plans must submit financial and participant data the same as 401(k) Plans. The financial schedules must also contain the assets held with all vendors (i.e. the financial institution that is custodian of plan assets) as identified in the plan’s restated document and newly mandated Information Sharing Agreements (ISA). It should be noted that 403(b) plans that are not subject to ERISA, including church plans and governmental plan, have always been and continue to be, exempt from Form 5500 reporting rules. Compliance Information Required Each Year If we are providing Compliance Services, we will require plan sponsors to provide a year-end census and complete the year-end questionnaire through the Plan Service Center. Important: For those ERISA plans that have not provided census information in previous plan years because they do not benefit highly compensated employees, or have not contributed employer contributions, census data must be remitted on all employees in order to calculate the required participant counts on the Form 5500. Form 5500 - Small Plan Filer vs. Large Plan Filer (Audit Requirements) Once a determination is made as to the plan filing (large vs. small), then certain schedules identified below will accompany the Form 5500. To help you determine whether you are a large or small plan filer, below is a definition as to what constitutes a “participant”.

1) Active participants include any individuals who are currently in employment covered by a plan and who are earning or retaining credited service under a plan. This category includes any individuals who are eligible to elect to defer compensation for the employer to make payments to a Code Section 403(b) plan. Active participants also include any non-vested individuals who are earning or retaining credited service under a plan. This category does not include the following:

a. Non-vested former employees who have incurred the break in service period specified in the plan

b. Former employees who have received a "cash-out" distribution or deemed distribution of their entire non-forfeitable accrued benefit.

2) Retired or separated participants receiving benefits. 3) Other retired or separated participants entitled to future benefits. 4) Deceased individuals who had one or more beneficiaries who are receiving or are

entitled to receive benefits under the plan. Large Plans with 100 or more participants at the beginning of the year will be required to file a report prepared by an independent auditor along with their Form 5500. To ensure that their Form 5500 can be filed in a timely manner, it is advisable that the plan begin the process of selecting an auditor and scheduling the audit as soon as administratively feasible following the end of their plan year. There are no exceptions in filing an audit report for large plans. However, the regulations do allow first year plan filers if the plan year is less than seven (7) months to delay attaching the audit report until the following year. In order for the plan's auditor to prepare their

report to be attached to the Form 5500, they may require additional financial information to backup their research. The audit package we prepare contains the annual plan summary, an SSAE16 Report (an audit report prepared by our independent auditor) and the Significant Change Letter. Audit Packages should now be requested through the PSC site. Please go to the Plan tab where the fiduciary documents are located, click on the Plan Audit Request option and then follow the completion instructions. The secure URL containing the audit file will be sent to the email address(es) you provide through the PSC request. The email address containing the secure URL will be delivered from [email protected]. Small plans are plans with fewer than 100 participants at the beginning of the year. Instead of filing Form 5500, small plans may file Form 5500-SF (Short Form), a two-page form without either attached schedules or an audit report. Form 5500 and Schedule Descriptions Form 5500-SF (Short Form Annual Return/Report of Small Employee Benefit Plan): The Form 5500-SF is filed for certain plans with 100 or less participants at the beginning of the year. It is a two-page form with no attached schedules. This form discloses participant counts, plan provisions and financial information in addition to general information regarding the plan sponsor. Form 5500 (Annual Return/Report of Employee Benefit Plan): The Form 5500 is filed for certain plans with 100 or more participants at the beginning of the year. The Form 5500 consists of general information about plan and plan sponsors including address, phone, EIN, participant counts, plan characteristic codes, funding arrangements and identifies the schedules to be attached. Form 8955-SSA (Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits) Form 8955-SSA is filed separately with the IRS and reports the amounts owed to terminated vested employees. The participants listed each year are those who terminated in the plan year PRIOR to the current plan year. The form also lists participants who have been previously reported but have since been paid out. Additional schedules that may be required:

• Schedule A (Insurance Information) – Schedule A is required for all plans with benefits provided by an insurance carrier, including commissions, fees and financial activity.

• Schedule C (Service Provider Information) – Schedule C is to be completed ONLY for large plan filers for each person receiving compensation in connection with services rendered to the plan of $5,000 or more paid either directly or indirectly from the plan, in connection with services rendered to the plan, or, if paid to a person, that person's position with respect to the plan during the plan year. Service providers who fail to or refuse to provide information are also reported.

• Schedule D (DFE/Participating Plan Information) –Schedule D is required for all plans that utilize pooled or collective funds, MTIA accounts, 103-12e accounts or if the return is filed for a Direct Filing Entity (DFE).

• Schedule H (Financial Information) – Schedule H is to be completed ONLY for large plan filers. It contains asset, liability and gain/loss statement. Large plan audits must attach an independent auditor’s opinion to the Schedule H when it is filed each year (unless they meet specific DOL exemptions).

• Schedule R (Retirement Plan Information) – Schedule R reports distribution, funding, and coverage information.

• Form 5558 (Application for Extension of Time To File Certain Employee Plan Returns)-Form 5500 (or Form 5500-SF) is due to the IRS\DOL by the last day of the 7th month following the plan year end, unless you file Form 5558. Form 5558 allows for an additional 2 ½ months extension to file beyond the original filing deadline.

Form 5500 - Fidelity Bond Information Regulations require that every fiduciary of an employee benefit plan and every person who handles plan assets be bonded. The fidelity bond is intended to protect plans from risk of loss due to fraud or dishonesty on the part of persons who handles plan assets. The bond must be for at least 10% of plan assets with a minimum of $1,000 and a maximum of $500,000 and be reported on the Form 5500. For plans holding employer stock the bond amount must be $1,000,000. Bonds must be placed with a Surety Company approved by the Department of the Treasury. A list is posted on the Department's Circular 570 available at http://fms.treas.gov/c570.html. Form 5500 - Electronic Filing For plan years beginning on or after January 1, 2009 paper filing of the Form 5500 will no longer be accepted. The Department of Labor (DOL) will require retirement plans to file the Form 5500 electronically through their new EFAST2 system. Plan Document All 403(b) plans (including Non-ERISA 403b’s) must have adopted a written plan document no later than December 31, 2009, provided the plan operated in good faith compliance with the final 403(b) Regulations during 2009. Plan Termination Effective in 2009, a plan termination is a distributable event for all 403(b) plans. Plan to Plan Transfer 90-24 transfers are no longer permitted. Transfers of participant assets to non-approved investment providers are subject to compliance with strict IRS regulations, unless the plan sponsor has Information Sharing Agreements (ISA) executed with the appropriate vendors by 9/24/08. Information Sharing Agreement (ISA)\Aggregator Part of the requirement beginning January 01, 2009 is that the plan sponsors and those financial institutions holding plan assets (vendors) have a formalized agreement in place to share the necessary information in order for plan sponsors to satisfy the new 403b requirements. One of the ways of meeting the information sharing requirement, is either to identify the vendors in the plan document or the plan sponsor can enter into an ISA (Information Sharing Agreement) with their vendors The ISA is a documented agreement between the plan sponsor and their various 403(b) vendors. These agreements are necessary so that financial transaction information can be coordinated among all vendors. If the assets are held exclusively with one vendor an ISA is not required. If the plan sponsor has multiple vendors they can appoint an Aggregator. An Aggregator is a person, institution or company who is responsible for collecting and coordinating the information shared between vendors for reporting and plan service needs. Note: If there are outside vendors with assets but those contracts were frozen prior to January 1, 2005, the financial information does NOT need to be reported in the Form 5500 filing. Further transition relief was released by the Department of Labor July 20, 2009 for contracts issued to employees before January 1, 2009 that had all contributions ceased by January 1, 2009, all rights

and benefits under the contract are enforceable against the insurer or custodian, and if the contract is fully vested, can be disregarded for financial and participant accounting in the Form 5500. For plans that have additional vendors and we are the Aggregator, we will solicit the financial information from the outside vendors in order to prepare a consolidated Form 5500 package. If we are unable to obtain all the vendor information, the Form 5500 will contain only those assets maintained here and those assets from statements received. If we are not the Aggregator, but compliance services are required, we are updating our records to ensure that ERISA 403(b) plans will receive the proper annual plan summary reporting to assist with this new requirement in the event your are not already receiving our complete annual plan summary report package. However, if we receive the necessary information electronically (or in a format that is consistent with the existing IRS Form 5500 and applicable schedules) and it is provided timely from each outside vendor under the Plan, we will prepare a consolidated Form 5500 package.

View or Print Prior Form 5500 Electronic Filing

To view or print a prior electronic Form 5500/5500-SF Filings go to www.efast.dol.gov

Click on “Form 5500/5500-SF Search” to view or print prior filed 5500s under Filings. Please consider turning off pop-up blockers in your web browser when using the EFAST2 Website. Pop-up blockers could stop the display of viewing 5500 filings or any other messages.

All 5500/5500-SFs that have been electronically filed will populate under the ERISA Filing Data Search Results. To obtain/print a copy click on the EIN number for the appropriate Plan Year End needed.

A File Download box will pop up allowing you to either open or save the 5500/5500-SF form so you can print a copy. All filings and components are available for printing to a local printer. Printing can be achieved in one of three ways:

• Create a PDF file of the filing or filing component, and then open it using software on your computer. Use the print functionality of the software to print the filing or filing component.

• Use your web browsers print function to print the current page only

• Print individual portions of an in-progress form or schedule in IFILE.

For more information on printing and accessibility buttons, see Section 5.6.3 of the IFILE User Guide found on the Main Welcome page of the EFAST website. If you have questions or problems with the website you can call the EFAST2 Help Line at 1-866-GO-EFAST (1-866-463-3278).

In the section “Fill in the search criteria and then click Search” enter in the appropriate information and then select [Search]. Please note: Not all fields need to be completed and when entering in the Plan Name it has to be exact.

Documents

Form 5500 User Guide - Empower Retirement · During the audit process, the auditor will prepare an Accountant’s Opinion which must be attached and included with the Form 5500 filing