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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-8921
The U.S. Department of Labor is seeking public comment on whether to
adopt a proposed nonenforcement policy for Form 5500 annual reports filed by
multiemployer plans providing post-retirement health and other welfare
benefits.
Under the proposed nonenforcement policy, the department would not
reject as deficient the Form 5500 reports of a multiemployer collectively
bargained welfare plan under certain conditions. Reports would not be rejected
if the opinion of the plan's accountant, accompanying the Form 5500, is either
"adverse" or "qualified" solely because the plan's financial statements do not
include the plan's estimated cost for providing future retiree health and other
post-retirement welfare benefits. The American Institute of Certified Public
Accountants' (AICPA) Statement of Position 92-6 (SOP 92-6) requires that the
financial statements of the plan include this projected cost.
Multiemployer plans formally requested the nonenforcement policy citing
a substantial increase in administrative and recordkeeping burdens that would
be required to calculate the cost of post-retirement welfare benefits in
accordance with SOP 92-6 and argued that the SOP 92-6 estimate does not provide
useful information to plan trustees and participants.
The notice, published in today's Federal Register, seeks public comment
on the implications, costs and benefits of allowing multiemployer plans to file
Form 5500 annual reports under this proposed policy. Multiemployer plans may
rely on the proposed policy for Form 5500 annual reports required to be filed
through plan year 1997. The department expects to have sufficient information
and data, based on the public comments received, to decide in advance of Jan.
1, 1998, whether the proposed nonenforcement policy should be adopted on a
permanent basis.
Public comments or requests for a hearing should be submitted in writing
to the Office of Regulations and Interpretations, Pension and Welfare Benefits
Administration, Room N-5669, 200 Constitution Ave., N. W., Washington, D.C.
20210, Attention: Reporting Enforcement Policy.
Archived News Release--Caution:
information may be out of date.
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