Ask the Experts June 6, 2017

(b)lines Ask the Experts – When the Individual Who Signed Form 5500 Retired

“We are starting preparations for our retirement plan’s Form 5500 annual return filing; however, the individual who signs our returns as employer and plan administrator retired, and the new person taking over the position inquired as to exactly who should be signing as the employer and plan administrator. Do the Experts have any guidance on the subject?”
Reported by

David Levine and David Powell, with Groom Law Group, and Michael A. Webb, vice president, Retirement Plan Services, Cammack Retirement Group, answer: 

Thanks for asking the first question of this year’s 5500 filing season! Yes, the Experts can provide you with some information in this area. Since the individual who retired, was signing as both the employer and plan administrator, unless he/she was doing so incorrectly, the plan administrator for your plan is likely identified in the document as the employer. However, this is not always the case, so it is important to check the plan document to confirm who is named as the plan administrator; it can be the employer, a specific internal party, or a third party. For more details, see our prior Ask the Experts column on the subject.

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As for who signs as the employer, it must be an authorized representative of the employer. This is generally an individual who is authorized by the Board or appropriate committee to sign all documents related to the plan, such as the plan document, plan service agreement, investment contract, etc.  Since your authorized signor recently retired, you will likely need to go through your plan’s governance procedures to authorize the new individual to sign on behalf of the plan, if you have not already done so. Also, the new individual will need to obtain electronic filing credentials for the Department of Labor’s EFAST2 electronic filing system.

Finally, it should be noted that the Employee Retirement Income Security Act (ERISA) only requires the plan administrator to sign the Form 5500, though in practice both the employer and plan administrator signature blocks are often completed. It is also important to note that, although Form 5500s are now filed electronically, ERISA requires that a hardcopy of the annual report with all required signatures be maintained as part of the plan’s records.

 

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.  

Do YOU have a question for the Experts? If so, we would love to hear from you! Simply forward your question to Rebecca.Moore@strategic-i.com with Subject: Ask the Experts, and the Experts will do their best to answer your question in a future Ask the Experts column.
Benefits June 5, 2017

Employers Find Physical Wellness Programs Successful

However, common barriers still exist with implementing these programs, a survey finds.
Reported by

Continued increases in productivity and decreases in absenteeism strengthen the case for workplace physical wellness programs, according to findings from the International Foundation of Employee Benefit Plans Workplace Wellness 2017 Survey Report.

The survey found 75% of employers offer wellness initiatives primarily to improve overall worker health and well-being. Only one in four employers said the main reason for offering wellness initiatives is to control/reduce health-related costs.

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Among employers offering and measuring their wellness efforts, more than half have found a decrease in absenteeism, 63% are experiencing financial sustainability and growth in the organization, 66% reported increased productivity and 67% said employees are more satisfied.

According to the survey, 77% of employers offer free or discounted flu shots, so traditional wellness offerings continue to gain steam. Popular emerging wellness benefits include:

  • Chiropractic services coverage – 62%;
  • Community charity drives/events – 59%;
  • On-site events/celebrations – 58%;
  • Wellness competitions like walking/fitness challenges – 51%;
  • Healthy food choices in cafeteria or vending machines – 44%;
  • Standing/walking work stations – 42%; and
  • Wearable fitness trackers – 23%.

Even though 92% of workplaces offering wellness programs and tracking wellness return on investments (ROI) report their initiatives as very or somewhat successful, barriers still exist in implementing wellness initiatives. Common barriers include:

  • Difficulty for workers to find enough time to participate – 39%;
  • Dispersed population – 27%;
  • Difficulty maintaining momentum – 26%;
  • Prohibitive costs – 25%; and
  • Lack of interest by workers – 24%.

Employers are using wellness incentives like gift cards, gym reimbursements and contributions to health accounts (HSAs, HRAs or FSAs) to help build interest among workers, and most are considering the incentives to be successful. Employers are also implementing targeted wellness communication campaigns to overcome common barriers, reaching out to different generations/age groups, those with health risks and those managing various life events (parenting, retirement, aging parents, etc.).

For more information, and to read the full survey report, visit www.ifebp.org/workplacewellness.

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