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ADVANCED PROSPECTING
WITH THE FORM 5500
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The Form 5500
The 5500 is the annual DOL disclosure Form
required for all ERISA-qualified benefit plans
Filed by
•Private Employer Groups
•Unions and for-profit Associations
Filed for
•401(k) Plans
•Health
•Life
•Dental
•And many more
Two Distinct Sets of Filers
Health
• 100 + employees in the plan
• About 85,000 filings per
year
• All companies file the same
basic form
Retirement
• 2 + employees in the plan
• About 700,000 filings per
year
• Smaller companies can file
the “Short Form”
What kind of information is in the
5500?
All Plans
•Aggregate data on plan participants
•Active, retired and separated
•Name of plan administrator
•Plan Types
Health/Welfare Plans
•Carriers, Brokers and Providers
•Insurance contract information
•Funding Arrangement
401(k)/Retirement Plans
•Total Plan Assets
•Asset/Liability statement
•Detailed financial disclosures
Disclosure Timeline
New Health/Welfare DOL Filings by Month
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Filings disclosed during 2012
Source: US Department of Labor
Dec
Know What You’re Looking At
The Anatomy of a 5500
The 5500 consists of the main form, a series of schedules and a set of
attachments. Here’s a quick rundown of what you’ll find on the various
sections
Portion
Data Type
Specific Items of Interest
Main
General
Renewal date, size of plan,
contact data, plan types
Schedule A
Insurance
Names of Carriers and Brokers
Schedule B
Actuarial
Schedule C
Providers
Name, compensation, and
service provided
Schedule H
Financials
Assets, Liabilities
The Main Form
On this portion of the form, you’ll find the following information:
•Plan Participant Info
•Employer Address
•Name of person signing as plan administrator
•Renewal Date of the plan
•Plan type codes (is it health, life, dental etc…)
•Plan funding arrangement
Timely Qualifier - Renewal Date
You’re more likely to get the meeting if you call 3 months prior to their plan year
end than if you call 10 months early. The plan’s renewal date can be found at the
top of the first page of the 5500.
Welfare Codes to Know:
4A = Health
4B = Life
4D = Dental
4E = Vision
Retirement Codes to Know:
1? = A Defined Benefit Plan
2? = A Defined Contribution Plan
2J = 401(k) Plan
Identifying Self Funded Plans
Fully Insured
Fully Self Funded
Partially Insured/ Partially Self Funded
Schedule
ScheduleAA
The Schedule A is filed when a plan is funded at least in part
through an insurance contract. It contains information on:
•A single insurance Carrier
•Any Brokers who were paid commissions or fees by the carrier
•The amount of commissions/fees paid
•The premium collected by the carrier
•The lines of coverage in the specific insurance policy
•# of employee lives covered by policy
Schedule
ScheduleAA
TIP
Providers who are not local to the plan may not
be able to provide the same level of
personalized service that you can.
Schedule A
Math!
Premiums: $23,028
Broker A Commission: $1,849
Broker B Commission: $181
$1,849+$181 = $2,030
Broker A
Broker B
$1,849 = 91%
$2,030
$181 = 9%
$2,030
Share of Premium is
$20,955
Share of Premium is
$2,072
Schedule A – Self Funding Revisited
What do you mean by self funded?
Partially Insured/ Partially Self Funded
Codes from the Main 5500
Schedule A – Self Funding Revisited
Benefit Boxes from Schedule A
Codes from the Main 5500
The Codes are Different!
Welfare Codes to Know:
4A = Health
4B = Life
4D = Dental
4E = Vision
Schedule A
Benefit Boxes from Schedule A
Most Common “Other” Types
Accidental Death and Dismemberment
Employee Assistance Program
Business Travel Accident
Long Term Care
Voluntary Short Term Disability
Schedules SB and MB
Schedule B is filed for all Defined Benefit plans and contains
actuarial information. Schedule SB is filed for single-employer DB
plans and MB is filed for multi-employer DB plans. On Schedule B,
you can find:
•The name of the actuary
•Assets
•Funding targets and status
•Minimum required contributions
•Statement of actuarial assumptions
Schedules SB and MB
Schedule C
Schedule C is filed when a third party provider is paid $5,000 or
more out of plan assets, or more than $1,000 in indirect
compensation. You can use Schedule C to determine:
•Total direct compensation of a provider
•Indirect compensation paid to a provider from mutual funds
•Names of providers who failed to provide appropriate disclosure
•64 unique service codes that explain the nature of the service provided
to the plan, including:
•Accounting
•Auditing
•Administration
•Trustee
•Insurance Brokerage
•Consulting
Schedule C – Health Focus
Schedule C – Health Focus
What does it mean when a big company like Cigna is filed on
Schedule A vs. Schedule C.
Schedule A
• Insurance Contracts
• Transference of risk
• Premiums collected
Schedule C
• Administrative Services Only
(ASO)
• No assumptions of Risk
• Fee for service
Schedule C – Retirement Focus
Schedule D
Schedule D is filed for a plan or Direct Filing Entity (DFE) that
invested in or participated in any Master Trust Investment Account
(MTIAs), Common Collective Trusts (CCTs) and/or Pooled Separate
Accounts. Items you’ll find on the Schedule D include:
•Name of Mutual fund or other investment vehicle
•Name of the sponsoring organization/DFE
•Dollar value of interest in the investment vehicle
Schedule D
Schedules H and I
Schedules H and I are financial disclosure schedules. Plans will file
a Schedule H or a Schedule I depending on their size. Large plans
(100+ participants) generally file a Schedule H. Smaller plans will
generally file a Schedule I. Plans will file either one or the other, not
both. Schedule H contains more information than Schedule I, but
both schedules will give you:
•Total Assets
•Income and Expense Statement
•Employee and Employer Contributions
•Admin Expenses
•Compliance questions
•Participant loans
Schedules H and I
QUALIFYING PROSPECTS
WITH THE 5500
Find Your Sweet Spot
What do your current clients look like?
Answering this question is the key to qualifying prospects using the
5500. There are over 800,000 filings. You can identify the ones that
are your best targets using:
Plan Type
# of Lives
Geography
Industry
Current Provider
Funding type
Where to Find Key Qualifiers
Short Form
5500 w/ Sch. I
(many small plans) (plans with < 100)
5500 w/ Sch. H
(plans with > 100)
Total Assets
Part III, item 7
Schedule I, Part I
item 1
Schedule H, Part I
item L
Participants
Part II, item 5(a)
Main Form, Part II
items 5 and 6
Main Form, Part II
items 5 and 6
Plan Type
Part IV, item 9(a)
Main Form, Part II
item 8a
Main Form, Part II
item 8a
Providers
N/A
Schedule A - Insurance
Schedule C - All Others
Schedule A - Insurance
Schedule C - All Others
Location
Part II, item 2(a)
Main Form, Part II 2(a)
Main Form, Part II 2(a)
Industry Type Part II, item 2(d)
Main Form, Part II 2(d)
Main Form, Part II 2(d)
WHERE TO FIND 5500s
5500 Resources
Free 5500 Access
www.freeERISA.com
•Search by company name
Premium 5500 Access
www.judydiamond.com
•Search by:
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Plan Type
Number of Participants
Brokers
Rate of Return
Participation Rate
Asset Amount
Thank you
~Eric Ryles
Managing Director
FreeERISA.com
Judy Diamond Associates