[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: 29CFR2520.103-2]



[Page 425-427]

 

                             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.  2520.103-2  Contents of the annual report for a group insurance 

arrangement.



    (a) General. (1) A trust or other entity described in Sec.  

2520.104-43(b) that files an annual report for purposes of Sec.  

2520.104-43 shall include in such report the items set forth in 

paragraph (b) of this section.

    (2) [Reserved]

    (b) Contents. (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 C (Service 

Provider Information), Schedule D (DFE/Participating Plan Information), 

Schedule G (Financial Transaction Schedules), Schedule H (Financial 

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.  2520.103-2(b)(5). These financial statements shall include 

the following:

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

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

statement of trust 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 all trust income and 

expenses and changes in net assets which includes the categories of 

income, expense, and



[[Page 426]]



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

income, expense, and changes in 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 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 group insurance arrangement including any significant 

changes in the group insurance arrangement made during the period and 

the impact of such changes on benefits; 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; 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 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 group insurance arrangement some or all of the 

assets of which are held in a pooled separate account maintained by an 

insurance carrier, or in a common or collective trust maintained by a 

bank, trust company 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 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 group insurance arrangement's annual report, such 

statement of assets and liabilities need not be filed with its 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, and see 

Sec.  2520.104-43(b)(2) for when the terms ``group insurance 

arrangement'' or ``trust or other entity'' shall be, respectively, used 

in place of the terms ``plan'' and ``plan administrator.''

    (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.  2520.103-8.

    (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 

priniciples 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



[[Page 427]]



exception shall be further identified as to (A) those that are the 

result of DOL regulations and (B) all others.

    (c) 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 trust or other entity described in Sec.  2520.104-43(b) 

maintains an original copy, with all required signatures, as part of the 

trust's or entity's records.



[43 FR 10140, Mar. 10, 1978, as amended at 54 FR 8627, Mar. 1, 1989; 65 

FR 21080, Apr. 19, 2000]