“Demystifying Form 5500s & Nondiscrimination Testing”
A Free Webinar for Our Partners
Thursday, August 12, 2021
1:30 p.m. – 2:30 p.m. EST
This blog is covering two fronts. First, we have information on our upcoming national webinar for you. If interested, please see the registration link found below. Secondly, we have an update for you on Wrangle’s position on the DOL’s transparency rule (under 408b2 of the Consolidated Appropriations Act) that goes into effect later this year.
Last February, 1,200 brokers and clients registered to participate in Wrangle’s presentation covering Wrap Plan Documents. This August, we will continue the series and provide answers and insight on several key areas of the Health and Welfare Form 5500 as well as Nondiscrimination Testing.
Some questions that will be addressed are:
- How should a 5500 be filed if there is not a Wrap Plan Document?
- Are eligible or enrolled participants counted?
- How to keep an FSA out of trust status?
- How should stop-loss be reported?
- What are five mistakes that require an amended filing?
- What are the Nondiscrimination Tests that need to be conducted?
All of those who register will receive a copy of the presentation, the recording, and the Q&A Document compiling all of the questions asked during the presentation and their answers. We will also provide a compliance checklists to help monitor what is needed for your client’s 5500 needs and other ERISA mandates.
Update on the Transparency Rule in the Consolidated Appropriations Act
Back in January, we reported that we would review the transparency rule on fee disclosures (408b2) in the Consolidated Appropriations Act and its impact on how we would work with our brokers and clients.
As a recap, this rule requires ERISA Health & Welfare plans to report when brokers and consultants receive $1,000 from the Plan.
We recently reviewed material provided by Thomson Reuters/EBIA and what stands out is:
- The need for reasonable disclosure requirements to be met on compensation between a health plan and covered service provider.
- Unofficially, all of our fees do meet the disclosure requirements and are transparent. Our current Form 5500 filings are covered through the service agreement that sets the service fee per client per ERISA Plan Year. Amended filings, where we prepared the original 5500, are done at no charge. Finally, those special projects such as multiple year DFVCs, nondiscrimination testing, and ERISA Plan Documents have a special payment acknowledgment form or project agreement that outlines the services and related fees.
- If we work directly with a plan sponsor, a separate service agreement is prepared and the direct compensation for the services is specified as well as how to make payment.
All along, our objective is to fully disclose our service fees. In the weeks ahead, our parent company, Ascensus, will provide its corporate stance on the matter. We will update this blog as soon as we are provided the details.
If you have any questions on Wrangle’s service fees, please don’t hesitate to reach out to Lynda Taylor, VP at email@example.com.