| Dear Center Members: |
This alert contains information regarding:
- Pooled employer plans (PEPs) resources
- DOL releases 2021 Form 5500
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EBPAQC resource on pooled employer plans (PEPs)
The EBPAQC has issued a new resource, Pooled employer plans (PEPs) special considerations, that assists in understanding pooled employer plans (PEPs) and potential complexities for auditors to consider in determining whether to accept a PEP financial statement audit engagement. This resource discusses the unique characteristics of a PEP; how a PEP is different from other multiple employer plans (MEPs) and multiemployer plans; the DOL financial reporting requirements for a PEP; unique items for auditors to consider; including engagement acceptance, understanding the entity, and audit evidence; and auditor independence considerations.
PEPs, a type of MEP, were established in section 101 of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). The SECURE Act allows unrelated employers to join a defined contribution retirement plan maintained by a pooled plan provider (PPP) acting as the plan’s administrator and named fiduciary. See EBPAQC Alert #478 for information about proposed DOL implementing regulations related to PEPs.
Click here for the EBPAQC resource, Pooled employer plans (PEPs) special considerations.
In addition, the EBPAQC has general MEP resources that members performing PEP audits may find helpful in better understanding PEPs. The EBPAQC Primer, Multiple employer retirement plans and multiple employer welfare arrangements, and the archived EBPAQC webcast, Multiple employer plan audits, provide a general overview of MEPs including relevant terms and definitions, structure and operations, and laws and regulations governing MEPs. The PowerPoint slides that accompany the webcast are also available for download.
Click here for the EBPAQC archived webcast, Multiple employer plan audits.
Click here for the EBPAQC Primer, Multiple employer retirement plans and multiple employer welfare arrangements.
DOL releases the 2021 Form 5500
The Department of Labor has released the 2021 Form 5500 Annual Return/Report and related instructions. Changes have been made to address reporting aggregate account balance information by employer for defined contribution multiple employer pension plans, pooled employer plans, retroactively adopted plans permitted by the SECURE Act, administrative penalties, and revisions to Schedules MB and SB. For details on the changes, reference the Changes to Note section of the 2021 instructions.
The proposed Form 5500 revisions and related DOL implementing regulations issued in September 2021 included broader provisions, including changes to implement a consolidated filing option for certain groups of defined contribution retirement plans as directed by section 202 of the SECURE Act; however, these broader changes are not included in the 2021 instructions and will be the subject of one or more future final notices.
Click here for the News Release, US Department of Labor Releases Information Copies of the 2021 Form 5500 Series Annual Return/Report.
Sincerely,
AICPA Employee Benefit Plans Audit Quality Center |
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