The proposed legislation joins a companion bill in the House of Representatives that would modernize Form 5500 reporting requirements
Senators Jim Banks (R-IN) and Cory Booker (D-NJ) on Monday introduced proposed legislation that would establish a single deadline for Form 5500 reporting.
The “Form 5500 Filing Simplification Act” aims to reduce administrative hurdles while enforcing transparency for retirement plans. It would establish a uniform statutory filing deadline for Form 5500 annual reports, thereby eliminating the need for employers to file a separate IRS Form 5558 extension request; allow Form 5500 filings and related reports to be signed electronically; direct the Department of Treasury, Department of Labor (DOL), and Pension Benefit Guaranty Corporation (PBGC) to modernize filing requirements and conform regulations accordingly; and maintain existing oversight and transparency requirements for employee benefit plans.
“Our commonsense bill simplifies and modernizes the reporting process for employer sponsored retirement plans reducing paperwork and eliminating outdated or unnecessary administrative hurdles,” said Sen. Booker. “By cutting red tape, these changes would reduce the compliance burdens on small and mid-size businesses offering retirement plans to their hardworking employees.”
The proposed legislation, introduced in the Senate, joins a companion bill in the House of Representatives that seeks to modernize and streamline outdated federal reporting requirements.
The Congressmen argue that under current law, plan sponsors do not have adequate time to complete their reports by the filing deadline. As a result, employers are often forced to submit a separate extension request to the IRS before filing the Form 5500 report.
“Employers shouldn’t have to jump through unnecessary bureaucratic hoops just to comply with federal employee plan reporting requirements,” added Sen. Banks. “This bipartisan bill cuts red tape, simplifies the filing process, and lets businesses spend more time serving their employees.”
Similar to the House version of the bill, the legislation is endorsed by the American Retirement Association (ARA), the ERISA Industry Committee (ERIC), the U.S. Chamber of Commerce, the CHRO Association, and the American Benefits Council.