Letter to DOL on Improvement of the Form 5500 Annual Return/Report of Employee Benefit Plan

Mr. Ali Khawar, Acting Assistant Secretary
Employee Benefits Security Administration
U.S. Department of Labor
200 Constitution Avenue, NW
Suite N-5677
Washington, DC 20210

Dear Acting Assistant Secretary Khawar:

The American Bankers Association (ABA) wishes to extend our thanks to the Department of Labor (Department), in response to our request, to defer regulatory action on the Schedule H reforms proposed by the Department in its recently finalized revisions to the Form 5500 Annual Return/Report of Employee Benefit Plan (Form 5500). As we stated in our letter, we believe that Schedule H reforms should be part of the Department’s larger ongoing effort to modernize the financial and other annual reporting requirements on the Form 5500. We understand that Department staff currently is engaged internally in such an effort, which is intended to result in a Notice of Proposed Rulemaking (NPR) scheduled for release later this year.

Prior to the NPR’s release, we would encourage Department staff to meet with us, individually and/or together with other stakeholders, to help inform the Department’s thinking and drafting efforts on Form 5500 reforms (including Schedule H), with the goal of crafting revisions that would make the terms used and information requested in the revised Form 5500 consistent with (i) existing industry standards and practices and (ii) information systems and technology, while being appropriately targeted to achieve the Department’s regulatory goals. These consultations further would give the Department an opportunity to consider additional improvements, refinements, and proposed alternative approaches. As a result, the modernized Form 5500 would reflect marketplace developments (such as in asset identification and classification), facilitate and streamline agency supervision, and provide relevant information to plan participants and beneficiaries.

Such agency consultation is also consistent with regulatory review and rulemaking. As stated in Executive Order 13563:

“Before issuing a notice of proposed rulemaking, each agency, where feasible and appropriate, shall seek the views of those who are likely to be affected, including those . . . who are potentially subject to such rulemaking.”

Moreover, as stated in Office of Management and Budget (OMB) Circular A-4:

As you [the Department] design, execute, and write your regulatory analysis, you should seek out the opinions of those who will be affected by the regulation . . . Consultation can be useful in ensuring that your analysis addresses all of the relevant issues and that you have access to all pertinent data. Early consultation can be especially helpful. You should not limit consultation to the final stages of your analytical efforts.”

We appreciate and support the Department’s efforts to improve the content, presentation, and use of Form 5500. We would look forward to a meaningful opportunity to contribute to the Department’s Form 5500 reform efforts.

If you have any questions or require any additional information, please do not hesitate to contact the undersigned at 202-663-5479 ([email protected]).

Sincerely,

Timothy E. Keehan
Vice President & Senior Counsel