Compliance January 8, 2010

EFAST2 Ready for Online Form 5500 Filings

January 8, 2009 (PLANSPONSOR.com) – Plan sponsors can now take full advantage of a new federal government system for online filing of the required annual report to the Employee Benefits Security Administration (EBSA) at the U.S. Labor Department.

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An EBSA news release said the EFAST2 system became fully operational December 31, 2009, and can now take electronic submissions of Form 5500 and Form 5500-SF documents.“Now that the EFAST2 system is operational, the Federal government and public will for the first time have real time, online access to financial information about private-sector employee benefit plans,” said Assistant Secretary of Labor Phyllis C. Borzi, in the news release.

The revised EFAST Web site has been updated to provide filers with a variety of tools and guidance, including the 2009 and 2010 Form 5500 and new Form 5500-SF schedules and instructions, Frequently Asked Questions, user guides, and a tutorial, according to the Labor Department.Filers and preparers can register for an account, complete the required forms and schedules online in multiple sessions, print a copy for their records, and submit it at no cost, according to EBSA.

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Filers may also use EFAST2-approved software to complete and submit their filings.  A list of EFAST2-approved software is available. 

Filers must submit the 2009 and 2010 annual return/report forms and schedules electronically through EFAST2.  Prior year delinquent or amended Form 5500 filings also now must be filed electronically except that timely 2008 plan year filings may still be filed through the original EFAST on paper until October 15, 2010, or electronically through June 30, 2010, EBSA said.

A PDF of the Frequently Asked Questions for printing is here. A video on electronic filing is availablehere. Assistance with the EFAST2 system and the Form 5500 and 5500-SF is available toll-free at 1-866-463-3278. 

The EFAST2 site is at www.efast.dol.gov.

Benefits January 8, 2010

New Agency Takes on Management of Swedish Pensions

January 8, 2010 (PLANSPONSOR.com) – Effective January 1, management of Sweden's various state-administered pension plans has moved to a single entity.
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BNA reports that a perceived lack of coordination between the nation’s Social Insurance Agency, (Forsakringskassan) and the Premium Pension Authority (PPM), led the government to approve in April 2009 a new law allowing the formation of the new Swedish Pensions Agency (Pensionsmyndigheten, or SPA), which is charged with administering the state income pension, supplementary pension, premium pension, and guaranteed pension. Swedish taxpayers contribute around 16% of their total annual salary into these plans, BNA said.

The establishment of the new system abolishes the PPM and transfers all pension-related activities of the Social Insurance Agency to the SPA. Lena Larrsson, an SPA official, told BNA that the new agency will help cut waste and improve customer service – areas in which the former system, under which two public bodies shared administrative control, had been deficient.

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Also on January 1, a new law took effect changing the terms of the nation’s premium pension plan, an income-based investment plan that is part of the national state pension, according to the news report. Under the plan, 2.5% of each taxpayer’s annual salary and other taxable payments are invested in up to five mutual funds chosen by each pension holder from more than 700 private funds offered by the government. Currently the default option is a global share fund with equal risk for all ages, but under the new rules, specific default investment options will offer a level of risk better suited to each individual’s age and financial requirements.

The new law also gives savers who actively choose their investments fund choices from more suitable risk profiles determined by the Seventh Public Pension Fund, the body charged with managing premium pension investments. BNA said the new law also allows authorities to charge pension savers for shifting their investments between approved funds, as long as the fees do not discourage savers from periodically reviewing their portfolios.

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