How to Identify a Defined Benefit Plan's Financial Statement

A defined benefit plan's financial statement in made up of two components, the tax return of the plan, called a Form 5500, and the plan valuation, which is summarized in the summary annual report. The 5500 is publicly available on the website www.freeerisa.com (registration is required, but there is no cost to access the 5500s for any plan). The 5500 includes data regarding the assets in the plan, the changes in market value, the amount paid out to retirees, the amount contributed and more. The summary annual report is required to be mailed to each plan participant and includes information on the funded status of the plan---that is, how much assets are on reserve versus the liabilities of the plan.

Difficulty: Easy

Instructions

How to Identify a Defined Benefit Plan's Financial Statement

1. Identify the name of the defined benefit plan. Write down the exact plan name in order to search for the plan's financial statement.

2. Visit www.freeerisa.com. Register for the site and confirm the registration through your email address.

3. Find the plan's 5500. Once you're registered, search the site using the plan's exact name. Typically, several years worth of filings will be displayed; select the most recent filing and print or save the form.

4. Find the summary annual report. This is a one-page document with a summary of certain financial data; it is mailed to plan all participants automatically.

5. The 5500 and SAR make up the plan's financial statement. This information can be used to determine the financial health of the plan.

References

• Free ERISA Website