DFVC - How far back?

[Guest KEK]

I have a client who has had a fully insured welfare plan since the early 1980s and it has always had over 100 participants. It turns out that no 5500s were ever filed.

They are very conservative and they'd like to file the delinquent 5500s under the DFVC, but how many years must they file under DFVC. The initial DFVC guidance in 1995 indicated that DFVC was for filings after 1/1/88. Does that mean we need to go back to 1988 and no further, or something less?

[Kirk Maldonado]

While not completely responsive to your question, my understanding is that the DOL did not have the authority to impose a monetary penalty for reporting delinquencies before 1989 (or some date around that time).

[Guest KEK]

An update based on a recent conversation with the DOL:

Evidently, the DOL (possibly in conjunction with the IRS) will be revising the DFVC program in the next few months. Supposedly, the revised DFVC program will significantly lower the sanction amount. Instead of paying $5,000 per FILING, the new sanction will be approx. $4,000 per PLAN.