DOL Proposes Rules Affecting Employee Benefits

On July 21, 2016, the Department of Labor (DOL) announced proposed rules to revise the Form 5500 Annual Return/Report, the main source of information concerning the funding, operation, investments and assets of employee benefit plans.

The objective of these proposed rules is to update the Form 5500 Annual Return/Report to streamline and improve the collection of information on investments, expenses and service provider fees, thereby increasing the information’s accessibility and usability. The revisions to the form range from an expanded compliance reporting section equipped with new questions regarding plan operations and management and service provider relationships, as well as a modernized set of questions for benefit plan investments and financial transactions.

Furthermore, the proposed rules would “update the requirements for certifications for limited scope audits that would make the certifications more detailed and informative, and enhance DOL’s ability to review limited scope audits.”

If passed, the proposed rules would apply for plan years beginning on or after January 1, 2019. The DOL is requesting comments on the proposed rules. Comments must be received before October 4, 2016.

To view the complete rule or submit comments, please, click here.