Booker, Banks Move to Modernize Outdated Retirement Plan Filing Rules

WASHINGTON, D.C. - U.S. Senators Cory Booker (D-NJ) and Jim Banks (R-IN) introduced the Form 5500 Filing Simplification Act, bipartisan legislation to cut red tape for employers who offer retirement plans to their workers. Every year, retirement plans must file a Form 5500 with the federal government detailing their operations, finances, and compliance. But overlapping deadlines and outdated paperwork requirements force employers - especially small businesses without in-house benefits staff - to file the same information twice and chase down wet-ink signatures. The Form 5500 Filing Simplification Act fixes both problems. It establishes a single, uniform filing deadline to eliminate duplicative filings, and it modernizes the process by permitting electronic signatures on required forms and reports - all while preserving the oversight and transparency that protect workers' retirement savings.

"Our commonsense bill simplifies and modernizes the reporting process for employer sponsored retirement plans reducing paperwork and eliminating outdated or unnecessary administrative hurdles. By cutting red tape, these changes would reduce the compliance burdens on small and mid-size businesses offering retirement plans to their hardworking employees, "said Senator Booker.

"Employers shouldn't have to jump through unnecessary bureaucratic hoops just to comply with federal employee plan reporting requirements. This bipartisan bill cuts red tape, simplifies the filing process, and lets businesses spend more time serving their employees," said Senator Banks.

Key Provisions of the Form 5500 Filing Simplification Act:

• One deadline, set in statute. Establishes a single, uniform filing deadline for Form 5500 annual reports - replacing the current patchwork that varies by plan type.

• No more extension paperwork. Eliminates the need for most plan sponsors to file a separate IRS Form 5558 extension request.

• Electronic signatures. Permits Form 5500 filings and related reports to be signed electronically, ending the wet-ink requirement.

• Agency modernization. Directs the Department of the Treasury, the Department of Labor, and the Pension Benefit Guaranty Corporation to update filing requirements and conform their regulations.

• No loss of accountability. Maintains all existing oversight and transparency requirements for employee benefit plans.

The legislation is endorsed by the American Retirement Association, the ERISA Industry Committee, the U.S. Chamber of Commerce, the CHRO Association, and the American Benefits Council.