A better way to ask… Non ERISA
A better clarification on a previous question may be, can a DB plan NOT be subject to ERISA? I always thought of DB pensions as qualified but if state statutes state that they are not subject to ERISA, how does that work? I am not talking about a 457 plan either..
I am trying to understand annual filing requirements (5500 yes/no) for a DB pension that is apparently not subject to ERISA.
If anyone knows more about state DB pensions vs. private funded DB pensions and ERISA requirements, any guidance would be great. Thanks!
Permalink Submitted by Martin Helmer on Mon, 2009-03-30 22:29
ERISA is a federal statute that specifically states its provisions do not apply to governmental and church sponsored plans. A few church plans have elected to opt out of the exemption. The exempt plans do not need to file Form 5500, which is otherwise required under Title I of ERISA. ERISA covers nonqualified plans too. I’m not sure of the prior question to which you’re referring.
Permalink Submitted by Joseph Arsenault on Mon, 2009-03-30 22:39
The question regarded an insurance company as a custodian of plan assets wanting to issue a 5500 on a state pension plan that is not subject to ERISA. I always thought of Defined Benefit plans as qualified because I have never worked with state plans, only corporate. At this point I need to cite the fact that the 5500 is not required..
Permalink Submitted by Martin Helmer on Tue, 2009-03-31 00:04
It’s not a question of qualified vs. nonqualified. The instructions to Form 5500 state ‘do not file Form 5500 for a pension benefit plan that is any of the following…………..#10 governmental plan.’ ERISA section 104 is where it says plans must file an annual report. Section 4 says governmental plans are exempt from this part of ERISA..
Permalink Submitted by Joseph Arsenault on Tue, 2009-03-31 00:34
Thanks Martin.