The Department of Labor now requires that Form 5500 annual reports be filed electronically for 2009 plan years and beyond, and paper reports are no longer accepted. As a result, any company that sponsors a retirement or welfare benefit plan and is required by the DOL to file a Form 5500 must be prepared to comply with the electronic filing mandate as detailed below.

What reports are affected by the new requirement?
The electronic filing requirement is in effect for Form 5500 reports of plan years beginning on or after January 1, 2009, including delinquent and amended filings. For 2008 plan year reports, a limited exception exists that allows such 5500s (including delinquent or amended submissions) to be filed using paper through October 15, 2010.

Who is required to file a Form 5500?
All retirement plan sponsors must file a Form 5500 annual report. Sponsor groups of welfare benefit plans with 100 or more participants at the beginning of the plan year are also required to file a Form 5500.

When is the filing due?
The Form 5500 is typically due seven (7) months after the end of the plan year. However, it is possible to obtain a 2½-month extension by filing a Form 5558 with the IRS (NOT the DOL). In addition, employers filing a 2009 short plan year Form 5500 that would be due before January 1, 2010, will be given an automatic extension to electronically file within 90 days after the new electronic filing system is available on the DOL website.

How are 5500s to be filed electronically?
Form 5500s must be submitted via an electronic system known as the ERISA Filing Acceptance System II, or EFAST2. This system, which became available in January 2010, allows users to prepare and submit 5500 files either through EBSA’s web-based filing system (known as IFILE) or by special software from an EFAST2-approved vendor. Individuals signing Form 5500s will now do so using an electronic signature and must register with the DOL to obtain electronic signing credentials. Upon registration with the DOL, the signer will be provided with a unique “Signer ID” and PIN number. These credentials cannot be shared with the Form 5500 preparer.

Employer Action Items
Employers who prepare their own Forms 5500 in-house will need to determine as soon as possible which method they will use to file (IFILE at the DOL website or other approved third party vendor software). If you use a consultant, broker or third-party vendor other than HCW to file your Form 5500, you may want to verify that the entity is fully prepared for filing under these new electronic standards.

Upcoming HCW Webinar
Hill, Chesson & Woody clients who are required to file a welfare benefit plan Form 5500 can look for an invitation to an exclusive webinar over the next few weeks to help them comply with the new electronic filing requirements. This webinar, scheduled for March 24, 2010, will discuss the electronic filing procedure and introduce new software we have purchased from an EFAST2-approved vendor to help prepare client Form 5500 reports. We will walk you through the process of obtaining electronic signing credentials with the DOL and demonstrate how you will receive and sign your Form 5500 using our EFAST2-approved software. 

For more information about the EFAST2 system, including a list of frequently asked questions and related resources, visit the DOL’s EFAST page. If you have further questions about Form 5500 electronic filing or the employer action items associated with it, please contact our office at (919) 403-1986.