When a fund manager accepts investments from two or more ERISA plans, it triggers a reporting requirement to the ERISA plan sponsor and an optional reporting requirement (filed on IRS Form 5500) for the fund as a direct deposit entity (« DFE ») with the U.S. Department of Labor (« DOL »). In the past, ERISA plan sponsors often indicated on their Form 5500 that the fund manager had filed a Form 5500 as an EFA, when in fact the fund manager had not filed a Form 5500, as described below. The DOL has now implemented a program to match the ERISA Plan Promoter`s Form 5500 reports with the Fund Manager`s DFE filing on Form 5500, and issues notices to ERISA Plan Promoters requesting clarification and, in some cases, additional information. Therefore, it is important that fund managers decide whether or not to file Form 5500 for their fund and clearly communicate this decision so that the ERISA plan sponsor can correctly report its investment in the fund on the plan`s annual Form 5500. Lines A, B, C and D. top The information must be consistent with Part II of Form 5500 attached to this Appendix D. Some companies in which the plans invest or participate also submit annual reports to the Ministry of Labour. These companies, called direct deposit entities or « DFEs, » include banks, joint or group trusts, insurance company group segregated accounts, master trusts, group insurance agreements, and companies covered by Ministry of Labour Regulation 29 CFR 2520.103-12. These reports include financial information on the FDEA and a list of investment or participation schemes. Do not use a Social Security number on line D instead of an EIN. List D and its annexes are publicly accessible and their contents are publicly available and may be published on the Internet.
For confidentiality reasons, the inclusion of a Social Security Number or part thereof in this Schedule D or any of its Schedules may result in the rejection of the submission. The information you enter on the ID screen through the TLD marks certain fields on Form 5500. However, you will still need to enter information on Screen D to complete Appendix D. The DOL has created the option for the manager of a segregated joint account, joint or collective trust, master trust investment or investment company 103-12 (hedge funds, private equity, REIT, etc.). (collectively, the « Funds » or the « Funds ») to provide the DOL with information about the underlying assets of their funds by filing a Form 5500 as an FTEA. If the fund manager files an application as an ERE, any ERISA plan investing in the fund is required to provide less details about the fund in the balance sheet (Appendix H) of Form 5500 of the plan (see 1 below). Since filing as an EED simplifies the investor reporting requirements of the ERISA plan, many fund managers file Form 5500 as an EED as a courtesy to their ERISA investors. The consequences of being or not being an EED are as follows: You can apply for an EIN from the IRS online, by phone, fax, or mail, depending on how quickly you need to use the EIN. For more information, see Section 3: Application for Electronic Filing in the general instructions on Form 5500. EBSAs do not issue EINs. Employee benefit plans: Schedule D (Form 5500) must be attached to a Form 5500 filed for an employee benefit plan that participated in or invested in one or more CCTs, public service announcements, MTIA or 103-12 IU during the plan year.
Whether or not it is submitted as an EED, the fund manager is required to inform its investors annually of the ERISA plan if it intends to submit an application as an EFA. The fund manager must also provide ERISA plan sponsors with the information they need to complete their plan Form 5500 within 120 days of the end of the ERISA plan year. Companies covered by Ministry of Labor Regulation 29 CFR 2520.103-12 are called direct deposit entities or « DFEs » and file annual returns with the Ministry of Labor. The reports include financial information on the FDEA and a list of investment or participation plans. These companies include certain banks, joint or group trusts, insurance company consolidated segregated accounts, master trusts and group insurance agreements. Complete as many repeated entries as necessary to enter the information below for all MTIA, CCT, PSA and IE 103-12 in which the plan or EFF that filed Form 5500 participated at any time during the year of the plan or VET. Element (c). top Enter the nine-digit Employer Identification Number (ON) and the three-digit Plan/Entity Number (PC) for each MTIA, CCT, PSA or 103-12 EI referred to in section (a). This must be the same EIN/PN RFE as indicated on lines 2b and 1b of form DFE 5500.
If a Form 5500 has not been filed for a CTR or PPE referred to in (a), enter the EIN number for the CCT or PSA and 000 for the PN. Don`t use a Social Security number or part of it in place of an EIN. List D and its annexes are publicly accessible and their contents are publicly available and may be published on the Internet. For confidentiality reasons, the inclusion of a Social Security Number or part thereof in this Schedule D or any of its Schedules may result in the rejection of the submission. Direct Reporting Entities: Schedule D (Form 5500) must be attached to a Form 5500 filed for a CT, PSA, MTIA, 103-12 EI or Group Insurance Agreement (GIA) as a direct deposit entity (i.e., when an « EFA » is reviewed in Part I, Line A of Form 5500). For more information, see the instructions for filing the direct deposit entity (TLE). The fund manager submits its files as an EED. If the fund manager decides to deposit as an EED, it files a separate Form 5500 and the applicable deadlines for the fund. The fund manager also provides the DOL with information about the fund`s underlying assets by attaching a copy of its audited financial statements (not applicable to segregated accounts or joint/collective trusts) to Form 5500.
Each investor in the ERISA plan must always file their own Form 5500. However, when declaring its investment in the Fund, it may report the Fund only as a single item on its balance sheet (Form 5500, Schedule H) instead of separating the items of its interest in each underlying investment in the Fund. The fund is not submitted as an FDEA. If the fund manager does not apply as an EFA, each large investor (100 or more ERISA plan participants) in the fund must declare their proportionate ownership interest in the fund`s underlying assets on their Form 5500 balance sheet. This may result in additional questions being asked of the fund manager by the plan sponsor or its external auditor responsible for auditing the financial statements of the ERISA plan in order to have sufficient detail to report the investment on its Form 5500. Check the Appendix D box of Form 5500 (Part II, line 10b(5)) if Form 5500 is accompanied by Appendix D. Complete as many repeated entries as necessary to indicate the required information. If Form 5500 is filed for a plan or direct reporting entity (TLE) that invests or has participated in Master Trust Investment Accounts (SIAs), Investment Corporations 103-12 (103-12 IE), Joint/Collective Trusts (CLAs) and/or Consolidated Segregated Accounts (PSAs), Part I contains information about these corporations.