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changes to form 5500 for 2014


Tom Poje

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for the SF they have added lines

5d(1) active begin of year

5d(2) active end of year

5e term < 100% vested

Active Participant Information. Filers are now required to provide the total number of active

participants at the beginning of the plan year and at the end of the plan year on both forms.

•Terminated Participant Vesting Information. Form 5500-SF filers now must provide the number of

participants that terminated employment during the plan year with accrued benefits that were not fully

vested.

for MEPs you will have to attach a schedule listing each company in the MEP as well as % of contribution.

(well, for Relius I was able to create a Crystal report to generate that attachment)

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The draft 2014 5500 Schedule SB now requires the vested funding target and the total funding target for inactive participants in pay status and also for terminated vested participants with deferred benefits.

Are there any enrolled actuaries out there who are including any non-vested benefits for inactive participants in the funding target (as opposed to treating all non-vested accrued benefits as forfeited as of the date of separation from service, or is there something else this is looking for)? When would the two columns (vested funding target and total funding target) show different values?

Always check with your actuary first!

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  • 2 weeks later...

Unless someone says something to the contrary, I will assume that the silence in response to my question above about portions of the funding target for inactives to be included in the total funding target column but not the in vested funding target column means that all enrolled actuaries will be reporting the same number in both columns.

Wishing all a happy new year!

Always check with your actuary first!

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I also have questions on the 'active participant' definition. When is 'currently in employment'? During the plan year or just on the first and last day of the plan year, per questions 5d1 and 5d2? What about a current year terminated participants with a balance? Are they considered active at the beginning of the year and not at the end? I have two 2014 final forms to do and wanted to get them out before testing season hit. Thank you.

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The definition of active participant hasn't changed from prior years. the instructions indicate:

For pension benefit plans, "participant" for this line means any individual who is included in one of the categories below. 1.Active participants (i.e., any individuals who are currently in employment covered by the plan and who are earning or retaining credited service under the plan). This includes any individuals who are eligible to elect to have the employer make payments under a Code section 401(k) qualified cash or deferred arrangement. Active participants also include any nonvested individuals who are earning or retaining credited service under the plan. This does not include (a) nonvested former employees who have incurred the break in service period specified in the plan or (b) former employees who have received a "cash-out" distribution or deemed distribution of their entire nonforfeitable accrued benefit.

note: my special thanks to FT William, they already have the 2014 up and running, it was easy to copy the instructions and post here.

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