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Statement of Need: This project was included in PWBA's Fall 1995 Regulatory Plan and will be included in the Fall 1996 Plan. Each year, pension and welfare benefit plans subject to Title I of ERISA are generally required to file an annual return/report, the Form 5500 Series, regarding their financial condition, investments, and operations. The Form 5500 Series is the primary source of information concerning the operation, funding, assets and investments of pension and other employee benefit plans, and is both an important compliance and research tool for the Department, and a disclosure document for plan participants and beneficiaries and a source of information and data for use by other Federal agencies, Congress, and the private sector in assessing employee benefit, tax, and economic trends and policies. ^PAs part of the President's Pension Simplification initiative, the Department, the IRS and the PBGC are conducting a comprehensive review of the annual return/report forms in an effort to streamline and information required to be reported and the methods by which the information is filed and processed. The proposed revised Form 5500 Series and regulations are being developed as a result of this review

Summary of the Legal Basis: Title I of ERISA, sections 101 through 105, 107, 209, and 606, impose specific reporting and disclosure obligations on administrators of employee benefit plans. Section 104(a)(3) and 110 of ERISA provide the Secretary with the authority to prescribe exemptions and alternative methods of compliance for employee welfare benefit plans and employee pension benefit plans. Section 505 provides the Secretary with general authority to prescribe regulations necessary or appropriate to carry out the provisions of Title I of ERISA.

Alternatives: Regulatory alternatives will be developed once determinations have been made, in conjunction with other concerned agencies, with regard to the scope and nature of the revisions to the Form 5500 Series which are necessary.

Anticipated Costs and Benefits: By simplifying the Form 5500 Series and creating an automated processing system for the filed reports, it is anticipated that filer costs of preparing forms, and Government processing costs, will be reduced. It is the goal of the Department to eliminate reporting requirements for information that is not needed to discharge its statutory responsibilities, while ensuring that participants and beneficiaries have access to the information they need to protect their rights and benefits under ERISA. ^PThis project is expected to reduce Government processing costs.

Risks: Failure to revise the Form 5500 Series Annual Reports for Employee Benefit Plans could deprive plans, sponsors and participants and beneficiaries, as well as the Government, of the cost savings and related benefits associated with streamlining the forms and their processing.