[Code of Federal Regulations]

[Title 29, Volume 9]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 29CFR2520.103-1]



[Page 423-425]

 

                             TITLE 29--LABOR

 

 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 

                                  LABOR

 

PART 2520_RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE--Table of 

Contents

 

                  Subpart C_Annual Report Requirements

 

Sec.  2520.103-1  Contents of the annual report.



    Source: 43 FR 10140, Mar. 10, 1978, unless otherwise noted.





    (a) General. The administrator of a plan required to file an annual 

report in accordance with section 104(a)(1) of the Act shall include 

with the annual report the information prescribed in paragraph (a)(1) of 

this section or in the limited exemption or alternative method of 

compliance described in paragraph (a)(2) of this section.

    (1) The annual report shall contain the information prescribed in 

section 103 of the Act.

    (2) Under the authority of sections 104(a)(3) and 110 of the Act, a 

limited exemption or alternative method of compliance is prescribed for 

employee welfare and pension benefit plans, respectively, which cover 

100 or more participants at the beginning of the plan year. A plan 

electing the limited exemption or alternative method of compliance shall 

file an annual report containing the information prescribed in paragraph 

(b) of this section and shall furnish a summary annual report as 

prescribed in Sec.  2520.104b-10.

    (b) Contents of the annual report for plans with 100 or more 

participants electing the limited exemption or alternative method of 

compliance. Except as provided in paragraph (d) of this section and in 

Sec. Sec.  2520.103-2 and 2520.104-44, the annual report of an employee 

benefit plan covering 100 or more participants at the beginning of the 

plan year which elects the limited exemption or alternative method of 

compliance described in paragraph (a)(2) of this section shall include:

    (1) A Form 5500 ``Annual Return/Report of Employee Benefit Plan'' 

and any statements or schedules required to be attached to the form, 

completed in accordance with the instructions for the form, including 

Schedule A (Insurance Information), Schedule B (Actuarial Information), 

Schedule C (Service Provider Information), Schedule D (DFE/Participating 

Plan Information), Schedule G (Financial Transaction Schedules), 

Schedule H (Financial Information), Schedule R (Retirement Plan 

Information), and the other financial schedules described in Sec.  

2520.103-10. See the instructions for this form.

    (2) Separate financial statements (in addition to the information 

required by paragraph (b)(1) of this section), if such financial 

statements are prepared in order for the independent qualified public 

accountant to form the opinion required by section 103(a)(3)(A) of the 

Act and Sec.  2520.103-1(b)(5). These statements shall include the 

following:

    (i) A statement of assets and liabilities at current value presented 

in comparative form for the beginning and end of the year. The statement 

of plan assets and liabilities shall include the assets and liabilities 

required to be reported on the Form 5500; however, the assets and 

liabilities may be aggregated into categories in a manner other than 

that used on Form 5500.

    (ii) Separate or combined statements of plan income and expenses and 

of changes in net assets which include the categories of income, 

expense, and changes in assets reqired to be reported on the Form 5500; 

however the income, expense, and changes in net assets may be aggregated 

into categories in a manner other than that used on Form 5500.

    (3) Notes to the financial statements described in paragraph (b)(1) 

or (2) of



[[Page 424]]



this section which contain a description of the accounting principles 

and practices reflected in the financial statements and, if applicable, 

variances from generally accepted accounting principles; a description 

of the plan, including any significant changes in the plan made during 

the period and the impact of such changes on benefits; the funding 

policy (including policy with respect to prior service cost) and any 

changes in such policy from the prior year, a description of material 

lease commitments, other commitments, and contingent liabilities; a 

description of agreements and transactions with persons known to be 

parties in interest; a general description of priorities upon 

termination of the plan; information concerning whether or not a tax 

ruling or determination letter has been obtained; an explanation of the 

differences, if any, between the information contained in the separate 

financial statements and the assets, liabilities, income, expenses and 

changes in the net assets as required to be reported on the Form 5500, 

and any other matters necessary to fully and fairly present the 

financial condition of the plan.

    (4) In the case of a plan, some or all of the assets of which are 

held in a pooled separate account maintained by an insurance company, or 

a common or collective trust maintained by a bank or similar 

institution, a copy of the annual statement of assets and liabilities of 

such account or trust for the fiscal year of the account or trust which 

ends with or within the plan year for which the annual report is made as 

required to be furnished to the administrator by such account or trust 

under Sec.  2520.103-5(c). Although the statement of assets and 

liabilities referred to in Sec.  2520.103-5(c) shall be considered part 

of the plan's annual report, such statement of assets and liabilities 

need not be filed with the plan's annual report. See Sec. Sec.  

2520.103-3 and 2520.103-4 for reporting requirements for plans some or 

all of the assets of which are held in a pooled separate account 

maintained by an insurance company, or a common or collective trust 

maintained by a bank or similar institution.

    (5) A report of an independent qualified public accountant.

    (i) Technical requirements. The accountant's report--

    (A) Shall be dated;

    (B) Shall be signed manually;

    (C) Shall indicate the city and state where issued; and

    (D) Shall identify without detailed enumeration the financial 

statements and schedules covered by the report.

    (ii) Representations as to the audit. The accountant's report--

    (A) Shall state whether the audit was made in accordance with 

generally accepted auditing standards; and

    (B) Shall designate any auditing procedures deemed necessary by the 

accountant under the circumstances of the particular case which have 

been omitted, and the reasons for their omission. Authority for the 

omission of certain procedures which independent accountants might 

ordinarily employ in the course of an audit made for the purpose of 

expressing the opinions required by paragraph (b)(5)(iii) of this 

section is contained in Sec. Sec.  2520.103-8 and 2520.103-12.

    (iii) Opinion to be expressed. The accountant's report shall state 

clearly:

    (A) The opinion of the accountant in respect of the financial 

statements and schedules covered by the report and the accounting 

principles and practices reflected therein; and

    (B) The opinion of the accountant as to the consistency of the 

application of the accounting principles with the application of such 

principles in the preceding year or as to any changes in such principles 

which have a material effect on the financial statements.

    (iv) Exceptions. Any matters to which the accountant takes exception 

shall be clearly identified, the exception thereto specifically and 

clearly stated, and, to the extent practicable, the effect of the 

matters to which the accountant takes exception on the related financial 

statements given. The matters to which the accountant takes exception 

shall be further identified as (A) those that are the result of DOL 

regulations, and (B) all others.

    (c) Contents of the annual report for plans with fewer than 100 

participants. Except as provided in paragraph (d) of this section and in 

Sec. Sec.  2520.104-43 and 2520.104a-6, the annual report of an employee 

benefit plan which covers fewer



[[Page 425]]



than 100 participants at the beginning of the plan year shall include a 

Form 5500 ``Annual Return/Report of Employee Benefit Plan'' and any 

statements or schedules required to be attached to the form, completed 

in accordance with the instructions for the form, including Schedule A 

(Insurance Information), Schedule B (Actuarial Information), Schedule D 

(DFE/Participating Plan Information), Schedule I (Financial 

Information--Small Plan), and Schedule R (Retirement Plan Information). 

See the instructions for this form.

    (d) Special rule. If a plan has between 80 and 120 participants 

(inclusive) as of the beginning of the plan year, the plan administrator 

may elect to file the same category of annual report (i.e., the annual 

report for plans with 100 or more participants under paragraph (b) of 

this section or the annual report for plans with fewer than 100 

participants under paragraph (c) of this section) that was filed for the 

previous plan year.

    (e) Plans which participate in a master trust. The plan 

administrator of a plan which participates in a master trust shall file 

an annual report on Form 5500 in accordance with the instructions for 

the form relating to master trusts and master trust investment accounts. 

For purposes of annual reporting, a master trust is a trust for which a 

regulated financial institution serves as trustee or custodian 

(regardless of whether such institution exercises discretionary 

authority or control respecting the management of assets held in the 

trust) and in which assets of more than one plan sponsored by a single 

employer or by a group of employers under common control are held. For 

purpose of this paragraph, a regulated financial institution is a bank, 

trust company, or similar financial institution regulated, supervised, 

and subject to periodic examination by a State or Federal agency. Common 

control is determined on the basis of all relevant facts and 

circumstances (whether or not such employers are incorporated).

    (f) Electronic filing. The Form 5500 ``Annual Return/Report of 

Employee Benefit Plan'' may be filed electronically or through other 

media in accordance with the instructions accompanying the form, 

provided the plan administrator maintains an original copy, with all 

required signatures, as part of the plan's records.



[43 FR 10140, Mar. 10, 1978, as amended at 45 FR 51446, Aug. 1, 1980; 46 

FR 61079, Dec. 15, 1981; 51 FR 41288, Nov. 13, 1986; 54 FR 8627, Mar. 1, 

1989; 65 FR 21080, Apr. 19, 2000]