Lost Schedules and DFVCP

[sloble@crowleyfleck.com]

Does anyone have any experience with a "good faith" attempt to collect difficult-to-find information for Form 5500/schedules for unfiled plans?

Large LTD and Life Ins plans haven't filed for several years and have changed vendors numerous times--administrator thinks it will be nightmare to get financials for all of the lost years. My reaction is just to do our best and leave blank what we cant findout after reasonable efforts.

Any thoughts?

[WDIK]

From the final rules for the DFVCP found here:

Annual reports filed under the DFVC Program may be subjected to the usual edit tests and plan administrators have an opportunity to correct identified deficiencies in accordance with the procedures described in Sec. 2560.502c-2. The failure to correct deficiencies in accordance with these procedures may result in the assessment of further penalties, and the payment of DFVC Program penalties do not serve to reduce the additional civil penalties that may be assessed for the filing of a deficient annual report.

It does not appear that you would be able to "leave blank" any information without being exposed to the possibility of additional penalties.

If the administrator thinks it would be a nightmare to collect or recreate the necessary information, have them add up the possible penalties for nonfilers. That should really keep them up at night.

[sloble@crowleyfleck.com]

FYI DOL commentary on Form 5500 states that if PA cant get Schedule A from insurers info by filing deadline after reasonable efforts then the PA should note this and file anyway Then supplement when the info comes available This is the answer I needed. thanks.