april 30 8.00am eric ryles-free_erisa

43
ADVANCED PROSPECTING WITH THE FORM 5500 Brought to you by:

Upload: summit-professional-networks

Post on 19-Jun-2015

89 views

Category:

Economy & Finance


1 download

TRANSCRIPT

Page 1: April 30 8.00am eric ryles-free_erisa

ADVANCED PROSPECTING WITH THE FORM 5500

Brought to you by:

Page 2: April 30 8.00am eric ryles-free_erisa

What is FreeERISA.com

Page 3: April 30 8.00am eric ryles-free_erisa

Signing Up

Page 4: April 30 8.00am eric ryles-free_erisa

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

Page 5: April 30 8.00am eric ryles-free_erisa

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”

Page 6: April 30 8.00am eric ryles-free_erisa

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

Page 7: April 30 8.00am eric ryles-free_erisa
Page 8: April 30 8.00am eric ryles-free_erisa
Page 9: April 30 8.00am eric ryles-free_erisa
Page 10: April 30 8.00am eric ryles-free_erisa
Page 11: April 30 8.00am eric ryles-free_erisa

Disclosure Timeline

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

New Health/Welfare DOL Filings by Month

Filings disclosed during 2012

Source: US Department of Labor

Page 12: April 30 8.00am eric ryles-free_erisa

Know What You’re Looking At

Page 13: April 30 8.00am eric ryles-free_erisa

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

Page 14: April 30 8.00am eric ryles-free_erisa

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

Page 15: April 30 8.00am eric ryles-free_erisa
Page 16: April 30 8.00am eric ryles-free_erisa

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.

Page 17: April 30 8.00am eric ryles-free_erisa
Page 18: April 30 8.00am eric ryles-free_erisa

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

Page 19: April 30 8.00am eric ryles-free_erisa

Identifying Self Funded Plans Fully Insured

Fully Self Funded

Partially Insured/ Partially Self Funded

Page 20: April 30 8.00am eric ryles-free_erisa

Schedule A

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 A

Page 21: April 30 8.00am eric ryles-free_erisa

Schedule A Schedule A

Page 22: April 30 8.00am eric ryles-free_erisa

Providers who are not local to the plan may not be able to provide the same level of personalized service that you can.

TIP

Page 23: April 30 8.00am eric ryles-free_erisa

Schedule A

Page 24: April 30 8.00am eric ryles-free_erisa

Math!

Premiums: $23,028

Broker A Commission: $1,849

Broker B Commission: $181

$1,849+$181 = $2,030

Broker A

$1,849 = 91%

$2,030

Share of Premium is

$20,955

Broker B $181 = 9%

$2,030

Share of Premium is

$2,072

Page 25: April 30 8.00am eric ryles-free_erisa

Schedule A – Self Funding Revisited

What do you mean by self funded?

Partially Insured/ Partially Self Funded

Codes from the Main 5500

Page 26: April 30 8.00am eric ryles-free_erisa

Schedule A – Self Funding Revisited

Benefit Boxes from Schedule A

Codes from the Main 5500

Welfare Codes to Know:

4A = Health

4B = Life

4D = Dental

4E = Vision

The Codes are Different!

Page 27: April 30 8.00am eric ryles-free_erisa

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

Page 28: April 30 8.00am eric ryles-free_erisa

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

Page 29: April 30 8.00am eric ryles-free_erisa

Schedules SB and MB

Page 30: April 30 8.00am eric ryles-free_erisa

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:

•Trustee

•Insurance Brokerage

•Consulting

•Accounting

•Auditing

•Administration

Page 31: April 30 8.00am eric ryles-free_erisa

Schedule C – Health Focus

Page 32: April 30 8.00am eric ryles-free_erisa

Schedule C – Health Focus

Schedule A • Insurance Contracts

• Transference of risk

• Premiums collected

Schedule C • Administrative Services Only

(ASO)

• No assumptions of Risk

• Fee for service

What does it mean when a big company like Cigna is filed on

Schedule A vs. Schedule C.

Page 33: April 30 8.00am eric ryles-free_erisa

Schedule C – Retirement Focus

Page 34: April 30 8.00am eric ryles-free_erisa

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

Page 35: April 30 8.00am eric ryles-free_erisa

Schedule D

Page 36: April 30 8.00am eric ryles-free_erisa

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

Page 37: April 30 8.00am eric ryles-free_erisa

Schedules H and I

Page 38: April 30 8.00am eric ryles-free_erisa

QUALIFYING PROSPECTS WITH THE 5500

Page 39: April 30 8.00am eric ryles-free_erisa

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

Page 40: April 30 8.00am eric ryles-free_erisa

Where to Find Key Qualifiers

Short Form (many small plans)

5500 w/ Sch. I (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)

Page 41: April 30 8.00am eric ryles-free_erisa

WHERE TO FIND 5500s

Page 42: April 30 8.00am eric ryles-free_erisa

Free 5500 Access www.freeERISA.com •Search by company name

Premium 5500 Access www.judydiamond.com •Search by:

– Plan Type – Number of Participants – Brokers – Rate of Return – Participation Rate – Asset Amount

5500 Resources

Page 43: April 30 8.00am eric ryles-free_erisa

~Eric Ryles

Managing Director

FreeERISA.com

Judy Diamond Associates

Thank you