Multiemployer Actuarial Certifications – Project Summary
The Employee Plans Compliance Unit summarized information from the multiemployer plans actuarial certifications we received in the last five years. Based on this information, we’re considering future multiemployer plans compliance projects.
Actuarial certification requirement
Multiemployer defined benefit plans must certify their actuarial status annually. This annual actuarial certification is due by:
- March 31 for a calendar year plan, or
- 90 days after the beginning of the plan year for a fiscal year plan.
Plan sponsors who fail to provide the certification on time may be subject to a penalty of up to $1,100 per day.
The certifications will come directly to the EPCU and we will enter key information from each one into a database that will give us an “at a glance” review of the certification’s completeness for future tracking and research.
EPCU’s other multiemployer plan projects
We focused on sponsors who filed a Form 5500-series return indicating they were a multiemployer DB plan but didn’t provide an actuarial certification. Most cases were resolved because:
- the plan wasn’t required to submit a certification because it terminated or PBGC took it over
- the plan used an incorrect EIN or there was a mismatched EIN
- the plan incorrectly indicated on Form 5500 that it was a multiemployer DB plan
- the certification listed incorrect or incomplete information
- the plan sponsor didn’t send a certification to the IRS
Multiemployer validation project
We focused on Form 5500 returns for plans we believed had incorrectly indicated they were multiemployer DB plans. The majority of the cases were resolved because the plan:
- was a defined contribution plan
- was a defined benefit plan but not a multiemployer plan
- was a DB multiemployer but didn’t file the required certification
- submitted a certification with discrepancies that prevented us from associating it with the correct files
Future EPCU project for multiemployer DB Plans
EPCU is considering a follow up project to determine why multiemployer DB plans with scheduled rehabilitation or funding improvement plans either:
- didn’t report their scheduled progress on the certifications, or
- aren’t making progress (for plans that reported “not making progress”).
IRS continues to receive and share data on multiemployer DB actuarial certifications with both the DOL and PBGC.