Dive Brief:
- A range of stakeholder groups who asked the Labor Dept. for an extension of time to offer comments on the Form 5500 Modernization proposals have gotten their wish. The Labor Dept. has given a two-month extension of the comment period.
- The federal government's forms revisions and regulatory amendments were proposed as part of a project to improve and modernize Form 5500 annual reports filed by employee benefit plans.
- Various stakeholder groups requested the comments extension given the scope and significance of the proposed forms revisions and regulatory amendments. The deadline is now Dec. 5, 2016 (moved from Oct. 4). According to the Labor Dept., the extension is intended to "facilitate robust and thoughtful public input" on the proposals, while respecting the need to keep the rulemaking aspects of the project moving forward.
Dive Insight:
Form 5500 applies to typical benefit plans, such as medical, dental, vision, life insurance, pension and 401(k). The Labor Dept. says one idea here is to "help plan sponsors, fiduciaries, and participants and beneficiaries better understand their plans and plan investments." Critics, including SHRM, say the proposed revisions would cause the most burden for small plans and employers that are currently exempt from filing, while also driving higher costs for all employers.
As is the case with so many of these updated federal compliance rules, the rule of thumb is employers need to look over their current data and begin to prepare for the potential change, even with the added delay. Of course, the hope is the added comment period will bring some changes to the existing proposal. The good news for employers is that proposals won't be in effect until plan year 2019.