Helping Nonprofits Ease Into Daunting New Reporting Requirements
DES MOINES, Iowa, April 15, 2009 — Non-profit employers who sponsor 403(b) retirement plans have their work cut out for them. In 2010 they’ll face rigorous new reporting requirements including submitting a full Form 55001 and, for larger plans, an independent plan audit.
The Principal Financial Group® is giving them a practice run by sending expanded Form 5500 packets now, along with life count and audit packages, to make the transition to the new reporting requirements easier.
“For the first time, ERISA 403(b) plan sponsors will face the same financial reporting and auditing requirements as 401(k) plans,” said Aaron Friedman, national non-profit practice leader for The Principal®. “We’re helping them ease into the hefty new reporting requirements by providing financial data and reports a year in advance along with user friendly directions. They will have a clear picture of what data they will need to collect and how to report it when the time comes.”
The Principal is providing 403(b) plan sponsors with:
* 2008 Life Count Package: helps verify all members are reported on Form 5500 and determines if the plan is large enough to require an independent audit
* Audit Package2: Gives the plan sponsor a snapshot of the data we provide to help them with future audits including financial information necessary for a limited scope audit.
* Expanded Form 5500 Packet: Helps familiarize plan sponsors with the type of information they will need to verify and what missing data they will need to provide for a complete Form 5500 report
These reports are just part of a comprehensive set of tools from The Principal to help plan sponsors get a head start in meeting several new reporting requirements. Other tools include:
* A white paper: The Road to Transparency: Form 5500 Annual Reporting, 403(b) Plans and Fair Value Measurements (FAS 157)
* An easy-to-use Form 5500 Quick Reference Guide
* An in-depth review of Value and Reporting of Retirement Plan Assets—FAS No. 157
* A plain language fiduciary handbook: Understanding and Managing Fiduciary Responsibility