Transcript Presentation Title

Welfare Benefit Plan 5500 Filings
Instructor – Susan P. Luskin, FLMI, CLU, CEBS, RHU, ChHC
© 2011, National Association of Health Underwriters • www.nahu.org
What is a 5500?
• Annual return/report of Employee
Benefits Plan to the Department of Labor
• All filings must be done electronically
through the new EFAST2 System
© 2011, National Association of Health Underwriters • www.nahu.org
EFAST 2 Sign Up Instructions
• Go to www.efast.dol.gov and click “register”
• Choose “Signer” from the “Select Role” field.
• Wait for an email from the EFAST2 system, which will
contain a message which you will need in order to
complete your registration.
• Write your USER ID and Password down, and keep
them in a safe place. You will need them in order to sign
your Form 5500.
• Accept the Privacy Statement.
• Enter your Contact Information.
© 2011, National Association of Health Underwriters • www.nahu.org
EFAST 2 Sign Up Instructions
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Your role is “Signer”.
Click the link to get your PIN
There will be a challenge question which you must answer.
Next there is an agreement if you have registered to be a
Signer.
Accept this agreement.
Complete the screen with the registration information.
You only need to register once, and your credentials will last
for 3 years.
If the person authorized to sign the 5500’s changes for your
company, the new signer will need to complete these steps.
© 2011, National Association of Health Underwriters • www.nahu.org
When to File
• Returns are due by the last day of the 7th
month following the close of the plan year.
© 2011, National Association of Health Underwriters • www.nahu.org
New Filing Requirement!
• If you have fewer than 100 participants on your
group welfare benefit plan(s) you are exempt
from filing a Form 5500 provided you have an
SPD in place with the appropriate "refund
allocation" language. The Form 5500 filing
exemption may be lost if a Plan Sponsor does
not disclose how insurer refunds are allocated.
This can be problematic because many small
employers do not prepare and distribute an SPD
containing this language, nor do they file a Form
5500-relying on the small plan exemption.
However, failure to prepare and file Form 5500
by the deadline can result in a DOL penalty of up
to $1,100/day.
© 2011, National Association of Health Underwriters • www.nahu.org
Who Should File?
• All Welfare plans covered by ERISA
– Includes group life, health, dental, vision,
disability, EAP
– Controversy – voluntary or worksite
insurance plans, lawyers argue both sides
© 2011, National Association of Health Underwriters • www.nahu.org
Who should file?
• If your group welfare benefits plan operates
on a calendar year basis (Jan1-Dec 31) then
you must file Form 5500 with the IRS by July
31st. Filing form 5500 is required when your
group welfare plan participant count reaches
100. A From 5500 should be filed for each
plan with this level of participation. You can
file one Form 5500 for multiple group welfare
plans if you have a "wrap" Summary Plan
Description (SPD) in place. Your Form 5500
plan number should be the same as that on
your wrap SPD.
© 2011, National Association of Health Underwriters • www.nahu.org
Who Should File?
• FILING EXCEPTIONS
– Welfare plan that covered under 100
participants at the beginning of the plan year
and is unfunded, fully insured, or a
combination.
– Welfare plan maintained outside the US for
nonresident aliens.
© 2011, National Association of Health Underwriters • www.nahu.org
Who Should File?
• FILING EXCEPTIONS
– Unfunded or insured plan for
management or Highly Compensated
Employees
– Governmental Plans
© 2011, National Association of Health Underwriters • www.nahu.org
Who Should File?
• FILING EXCEPTIONS
– Employee benefit plan maintained only to
comply with
• Workers compensation laws
• Unemployment laws
• Disability insurance laws
© 2011, National Association of Health Underwriters • www.nahu.org
Who Should File?
• FILING EXCEPTIONS
– An apprenticeship or training program
– A Church plan
© 2011, National Association of Health Underwriters • www.nahu.org
Special Form 5500’s
• Final 5500 – plan has been terminated and all
assets distributed
• Amended return – previous return contained
errors
• No further returns expected – plan continues, but
with less than 100 participants
© 2011, National Association of Health Underwriters • www.nahu.org
Schedules to be Filed
• Small plan – less than 100 participants,
only if funded (self-funded, trust)
• Schedule A – 1 for each insurance
product or company (agent
assistance here)
• Schedule I – small plan financial
information
© 2011, National Association of Health Underwriters • www.nahu.org
Schedules to be Filed
• Large plan – more than 100 participants
• Schedule A - 1 for each insurance
product or company
• Schedule C – Service provider
information
• Schedule H – if funded, large plan
financial information
• CPA certification – if Schedule H is
required
© 2011, National Association of Health Underwriters • www.nahu.org
Administrative Penalties
• Civil penalties
– Up to $50/day for late filing, no maximum
– Up to $300/day for not filing, maximum $30,000 per plan year
– Up to $1000 for not filing actuarial statement
• Criminal penalties
– Up to $5000 and not more that 1 year in prison for any
violation of Title I
– Up to $10,000 and not more than 5 years in prison for making
any false
– Statement, or for concealing or not disclosing any fact
required by ERISA
© 2011, National Association of Health Underwriters • www.nahu.org
How many 5500’s are
required to be filed?
• Each plan must file a separate 5500
– Definition determined by the Plan Document
– Each plan has a unique 3 digit plan number,
welfare series 500 and 600
© 2011, National Association of Health Underwriters • www.nahu.org
How many 5500’s are
required to be filed?
• Wrap Document
– Would permit various different insurance
policies to be filed as a single plan
– Renewal dates and eligibility requirements
should be the same
© 2011, National Association of Health Underwriters • www.nahu.org
The Delinquent Filer Voluntary
Compliance Program (DFVCP)
© 2011, National Association of Health Underwriters • www.nahu.org
The Delinquent Filer Voluntary
Compliance Program (DFVCP)
Definition – program
sponsored by the DOL to
provide plan administrators
with the opportunity to pay
reduced civil penalties for
voluntarily complying with
annual reporting
requirements
© 2011, National Association of Health Underwriters • www.nahu.org
The Delinquent Filer Voluntary
Compliance Program (DFVCP)
Who is eligible to participate?
Any plan administrator who files
before late notification is received.
Is participation available to all filers?
No, not for 5500EZ or plans with no employees.
© 2011, National Association of Health Underwriters • www.nahu.org
What is the procedure for filing under
the DFVC Program?
• File a complete 5500, including all Schedules, for each
year the plan administrator is requesting relief –
electronically
• Make sure Box D is checked to request participation in
program – 2001+
• Go to www.dol.gov/ebsa/calculator/dfvcmail.html and
enter the plan number
© 2011, National Association of Health Underwriters • www.nahu.org
What is the procedure for filing under
the DFVC Program?
• Enter the day the plan year ended, the number of
participants on the first day of the plan year and the date
the filing was submitted to EFAST
• If the filing was already submitted, call 866-463-3278 to
ascertain the receipt date and enter that date. If another
filing for this plan is being submitted under the DFVCP,
select the “Add Another Year” button and follow instruction
#3. Continue until all filings that are being submitted for
this plan have been entered.
© 2011, National Association of Health Underwriters • www.nahu.org
What is the procedure for filing under
the DFVC Program?
• Once all plan year filings are entered, select the
“Enter/Calculate” button to get the penalty amount
• Penalty amounts
– Small plan - $10/day, up to $750 plan year, not to exceed $1500
– Large plan - $10/day, up to $2000 plan year, not to exceed $4000
– Extensions not considered when calculating the penalty
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
– Sponsor Name – enter the name of the
sponsor of the plan as it appears on the
most recent Form 5500.
– Sponsor EIN – enter the EIN of the sponsor
of the plan as it appears on the most recent
Form 5500.
– Administrator Name – enter the name of the
administrator as it appears on the most
recent Form 5500. If the administrator is the
same as the sponsor, enter same.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
– Administrator EIN – enter the EIN of the
administrator as it appears on the most
recent Form 5500. If left blank on the
Form 5500, leave blank. This is the only
field that maybe left blank.
– Plan Name – enter the name of the plan
as it appears on the most recent Form
5500.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
– Plan Number – this is automatically entered
based on the plan number entered on the
calculator. It can not be changed.
– Contact Name – enter the name of a contact
person who would be able to answer
questions about this filing. Enter both first
and last name.
– Contact Email – enter the email address of
the contact person.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
– Contact Phone Number – enter the
phone number of the contact person.
– Type of Plan – select the type of plan that
you are filing for. Please note that Form
5500-EZ filers are not eligible for the
DFVCP.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
– After entry of plan information, review the
Summary of DFVCP Calculator Results for
completeness. The filings listed in this
section are the filings that are being
submitted to the DFVCP. Should you wish to
submit additional filings for this plan, you
must use the "Back" button and enter those
filings. (The plan information will be not be
saved). After completing this transaction,
you cannot add any more filings to the
submission just completed. You will need to
make a new submission and pay the
applicable penalties.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
– Review the five statements and check
the confirmation box. In order to continue
with online payment, you must agree to
these statements.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
• After agreeing to the statements, you will
go to the Pay.Gov site, which is a
Department of Treasury Web site.
Pay.Gov is a 3 step process where you
will enter your payment information then
receive confirmation of the transaction.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
• Step 1: Enter Payment Information. You may
pay using either your Bank Account (Option 1)
or using a Plastic Card (Option 2). Enter all the
required information and select the "Continue"
button. You may not change the payment
amount. The only allowed payment amount is
the amount calculated by the DFVCP
Calculator based on the information that you
entered.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
• Step 2: Authorize Payment contains a summary
of your information, the account information, and
the payment information. You may enter an
email address where a confirmation email will be
sent. If all information is correct, select the
"Submit Payment" button.
• Step 3: Confirm Payment is a confirmation of the
transaction, but is not confirmation of payment
or of acceptance into the DFVCP. If you entered
an email address, you should also receive an
email confirmation.
© 2011, National Association of Health Underwriters • www.nahu.org
Online payment instructions
If you select "Return to Agency Web site" at
the bottom of the page, you will be returned
to the Department of Labor Web site and a
DFVCP E-Payment Confirmation.
Once again, this confirmation is only that the
payment has been authorized and is not a
confirmation of receipt of payment.
© 2011, National Association of Health Underwriters • www.nahu.org
Unauthorized Entities
An entity that is required to be licensed or registered with the Florida Office of Insurance Regulation but is
operating without the proper authorization is identified as an unauthorized insurer. All persons have the
responsibility of conducting reasonable research to ensure they are not writing policies or placing business
with an unauthorized insurer. Any person who, directly or indirectly, aid or represent an unauthorized
insurer can lose their licenses or face other disciplinary sanctions. Please see section 626.901, Florida
Statutes, to read the laws. Lack of careful screening can result in significant financial loss to Florida
consumers due to unpaid claims and/or theft of premiums. Under Florida law, a person can be charged
with a third-degree felony and also held liable for any unpaid claims and refund of premiums when
representing an unauthorized insurer. It is the person’s responsibility to give fair and accurate information
regarding the companies they represent.
© 2011, National Association of Health Underwriters • www.nahu.org