DOL Issues Final Revisions to 2023 Form 5500 Employee Benefit Plan Reports
Published February 24, 2023
The Department of Labor (DOL), Internal Revenue Service (IRS) and Pension Benefit Guaranty Corporation (PBGC) have announced a technical correction
and change to the operational date of the final rule published on
February 24, 2023, on annual reporting requirements under Title I of the
Employee Retirement Income Security Act of 1974, as amended (ERISA).
The document contains two technical changes to the regulations:
- It
changes the operational date of the final rule amendments to the
regulations to address the Congressional Review Act (CRA) requirement
under which a major rule cannot be effective until 60 days after
publication in the Federal Register or receipt by Congress, whichever is
later; and
- Corrects a typographical error in the lettering of a paragraph in the regulations.
This
final rule is effective May 31, 2023. The operational date of the
amendments published at 88 FR 11793 is changed from April 25, 2023, to
May 31, 2023.
(updated May 17, 2023)
The
Department of Labor (DOL), Internal Revenue Service (IRS) and Pension
Benefit Guaranty Corporation (PBGC) have announced changes to the Form
5500 Annual Return/Report of Employee Benefit Plan and Form 5500–SF
Short Form Annual Return/Report of Small Employee Benefit Plan effective
for plan years beginning on or after January 1, 2023. The announcement
marks the third and final phase of implementation of a September 2021
regulatory proposal, which included changes related to provisions in the
SECURE Act of 2019.
The 2023 plan year
reports – which generally will be filed beginning in July 2024 for
calendar year plans – include the following changes:
Federal Register Notices
- A consolidated Form 5500 reporting option for certain groups of defined contribution retirement plans, improved reporting by pooled employer plans and other multiple employer plans.
- A change in the participant-counting methodology for determining eligibility for simplified reporting alternatives available to “small plans,” which are generally plans with fewer than 100 participants.
- A breakout of reporting on administrative expenses paid by the plan on the plan’s financial statements.
- Further improvements in financial and funding reporting by PBGC-covered defined benefit plans.
- The addition of selected Internal Revenue Code compliance questions to improve tax oversight and compliance of tax-qualified retirement plans.
- Technical and conforming changes as part of the annual rollover of forms and instructions.
- Technical adjustments to
address certain provisions in SECURE Act 2.0 of 2022 on Code section
403(b) multiple employer plans, including pooled employer plans, minimum
required distributions and audit requirements for plans in defined
contribution group reporting arrangements.
Federal Register Notices
- Includes
appendices that illustrate the changes to the forms and instructions,
and "mock-ups" of the new Schedule DCG, Schedule MEP, and their
instructions. The normal release of "for information-only" copies of the
forms and instructions will happen later in 2023.
The rules are effective/applicable for plan years beginning on or after January 1, 2023.