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On November 25, the U.S. Department of Labor (DOL) announced updates to the annual benefits plan report/return filings. In general, the DOL’s Employee Benefits Security Administration (EBSA) teamed up with the Internal Revenue Service (IRS) and Pension Benefit Guaranty Corporation (PBGC). As part of this joint effort, the agencies released informational copies of the 2024 Form 5500, Form 5500-SF, IRS Form 5500-EZ, IRS Form 5558, and related instructions online. Subsequently, the IRS will release paper copies of Form 5500-EZ and instructions for 2024 separately on its website. This will occur after January 1st, 2025. Previously, in February 2024, the DOL announced that under the Employee Retirement Income Security Act (ERISA), the EBSA recovered $1.435 billion for ERISA complaints and other benefits violations in fiscal year (FY) 2023.
Overview of the Form 5500 Series Return/Report
In summary, the DOL developed the Form 5500 series annual benefits plan return/report with the IRS and the PBGC. The Form 5500 allows employee benefit plans to satisfy annual reporting requirements. Specifically, these reporting requirements fall under Title I and Title IV of ERISA and the Internal Revenue Code. Basically, ERISA sets minimum standards for most voluntarily established retirement and health plans in private industry. Specifically, ERISA protects individuals in these plans. The Form 5500 series return/report assures that employee benefit plans follow specific prescribed standards. Additionally, it ensures that participants, beneficiaries, and regulators have access to sufficient information about their rights under employee benefit plans. Forms 5500 annual benefits plan report/return filings are among the five types of employee records all employers must keep.
Changes to the 2024 Form 5500 Series Return/Report
Explicitly, employers will find important modifications to the 2024 Form 550 series return/report in the Instructions’ “Changes to Note” section. Specifically, the Changes to Note sections for Form 5500 and Form 5500-SF indicate the following changes:
- A new plan characteristics code, 2Y, for pension-linked savings accounts.
- An update to Schedule SB instructions for certain expected benefits payable in annuity form.
Employers Takeaways
In conclusion, employers should note that they cannot use Form 5500 informational copies to file their 2024 Form 5500 series annual benefits plan return/report. Filers may instead access the EFAST2 website for the official electronic versions of the Form 5500 Series as they become available for filing purposes. Additionally, employers may call the EFAST2 help desk at 866-463-3278 for further assistance.
Finally, beginning January 1st, 2025, Form 5558 can be electronically filed through EFAST2. Form 5558 can also be filed with the IRS using a paper Form 5558. A Defined Contribution Group (DCG) reporting arrangement can file Form 5558 for plans participating in the DCG. Those groups are not required to attach a list of participating plans to Form 5558.
Recent studies indicate that employees are suffering from increased stress, anxiety, and depression due to divisive political issues and civil unrest. Subsequently, mental health issues can directly impact employee productivity and engagement in the workplace. Recently, in the realm of employee benefits, three federal agencies issued final rules on substance use disorder care and mental health benefits. The DOL, Department of Health and Human Services (HHS), and the Department of the Treasury hope these rules clarify and strengthen protections to expand equitable access to these benefits. To assist employers, WorkWise Compliance created the Mental Health in the Workplace eLearning Modules. This product includes:
- two interactive trainings on mental health in the workplace,
- guidance for employers to navigate legal issues, and
- training for employees to improve their mental health, productivity, and morale.
The IRS, DOL, and PBGC have released information on the 2024 Form 5500 series for employee benefits plan filings, with key changes to note. Employers should use Workplace Compliance Checklists to ensure they meet filing requirements and stay compliant.
