oversight

Employee Benefit Plans: Efforts to Streamline Reporting Requirements and Improve Processing of Annual Plan Data

Published by the Government Accountability Office on 1997-11-14.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

7        United States
J   A0   General Accounting     Offhze


         Health, Education    and Human Services Division


         B-278489

         November 14, 1997

         The Honorable Charles E. Grassley
         Chairman, Special Committee on Aging
         United States Senate

         Subject:    Emnlovee Benefit Plans: Efforts to Streamline Renorting
                     Reauirements and Imnrove Processing of Annual Plan Data

         Dear Mr. Chairman:

         The Congress enacted the Employee Retirement Income Security Act of 1974
         (ERISA) to protect the benefits of participants in private pension and welfare
         plans. ERISA requires plans to file annual reports providing financial and other
         information about plan operations. These plans meet this requirement by mg
         the Form 5500 Series, Annual Return/Report of Employee Benefit Plan,
         hereafter referred to as Form 5500 Reports. About 1 million Form 5500
         Reports are filed annually. Most of the reports are Bed on paper, although
         about 7,000 returns are filed electronically. Plans file the reports at one of
         three Internal Revenue Service (IRS) service centers, where they are processed
         in the same system IRS uses for processing individual and corporate revenue
         returns. Form 5500 Reports are screened for accuracy and completeness and
         shared with the Department of Labor (DOL), the Pension Benefit Guaranty
         Corporation (PBGC), and the Social Security Administration (SSA). In past
         years the agencies have spent as much as $25 million each year on Form 5500
         Report processing, although recently budget restrictions have forced the
         agencies to reduce the amounts spent, causing reductions in the level of
         processing. Under current filing deadlines (210 days after the end of the plan
         year) and using IRS’ processing system, it takes about 2 years following the end
         of the plan year being reported on for the agencies to obtain usable
         computerized Form 5500 Report data.

         In response to your August 1997 letter, we obtained information on the status
         of DOL efforts to streamline the Form 5500 Report and automate processing of
         the forms. Specifically, you asked us to determine (1) the uses of the Form
         5500 Reports, (2) the status of government efforts to streamline the Form 5500




                                    GAOIHEHS-9845R           Improvingthe   Form5500   Report

                                              /L.cP         L?i25   v
B-278489                                                -

Reports and reporting and illing requirements, and (3) what actions have been
                                                       _.
taken to expedite processing of the forms.

To answer your questions, we reviewed reports on the uses of Form 5500
Report data. We also reviewed documents from DO& on the proposal to
streamline the Form 5500 and its request for proposals to develop a new forms
processing system. Finally, we interviewed headquarters officials from DOL,
IRS, and PBGC. We conducted our work between August and October 1997 in
accordance with generally accepted government auditing standards.

In summary, we found that Form 5500 Report data are used for ERISA
enforcement and are made available to the public for research. DOL also
makes the reports available to plan participants and beneficiaries through its
public disclosure office. To simplify Form 5500 Reports and lessen the burden
on Hers, DOL, IRS, and PBGC have proposed using a streamlined form for the
1998 plan year. The revised main form is to serve as a short registration
document, and appropriate schedules (or attachments) are to be iiled with the
form. The revised Form 5500 Report is expected to reduce the total paper
filing burden by 12 to 14 percent annually over the lo-year life of the form.
The Congress reduced reporting requirements by eliminating the sununary plan
description filing requirement, which is expected to save plan administrators
$2.5 million and 150,000 paper filing burden hours annually. However, although
DOL and IRS have improved Form 5500 Report processing, problems remain.
As a result, DOL is developing a new processing system, the ERISA Filing
Acceptance System (EFAST), to be operated by a private contractor by 1999.
The system, designed to accommodate the needs of all three agencies, will use
 optical scanning technology to computerize paper Form 5500 Report filings,
 reducing the costs and burden on filers and the government. DOL issued a
 request for proposals for the system on October 24, 1997, and plans to issue a
 conlxact for full development and operation by April 1999.

BACKGROUND

Currently, the Form 5500 Report consists of a six-page main form and may
include up to eight accompanying schedules. Plans with 100 or more
participants file the Form 5500 Annual Return/Report of Employee Benefit Plan.
(See enc. I.) Plans with fewer than 100 participants file the Form 5500-C
Return/Report of Employee Benefit Plan at least every third year and file the
Form 5500-R Registration Statement of Employee Benefit Plan in the
intervening 2 years. (See enc. II.) DOL may assess a penalty of up to $1,000
per day against a plan administrator who fails or refuses to iile a Form 5500
Report or whose report is rejected for failing to include material information.

2                     GAOIHEHS-98-45R       Improving       the Form 5500 Report
                                                          -
B-278489
In addition to filing the Form 5500 Report, employee benefit plans were
required to file summary plan descriptions or summary ‘material moclifIca$ons
with DOL. The summary plan description is supposed to explain, in plain
English, how the plan works, what benefits the plan provides, and how those
benefits might be calculated. If changes in the plan provisions occurred,
administrators were to issue summary material modifications describing those
changes. Admmistrators were also required to periodically update summary
plan descriptions, incorporating all modifications, and provide copies of the
updated summary plan descriptions to participants, beneficiaries, and DOL.

In 1993, recognizing long-standing problems with the timeliness and costs of
filing Form 5500 Reports and burdensome ERISA reporting requirements, the
National Performance Review (NPR) recommended changes in the filing
requirements to increase efficiency and lower costs. Specifically, NPR
recommended changing the Form 5500 Report filing deadline from 210 days to
90 days after the end of the plan year, automating filing and processing of the
forms, and eliminating the requirement for filing aI3 summary plan descriptions
1~2thDOL.

FORM 5500 REPORTS USED FOR ERISA ENFORCEMENT,
PUBLIC INFORMATION. AND RESEARCH

DOL, IRS, and PBGC use Form 5500 Reports for various purposes. DOL uses
both manual and automated reviews of the forms to select financial
institutions, service providers, and pension and welfare plans for investigation.
In 1990, DOL developed a number of targeting programs that automatically
search Form 5500 Report information for characteristics that DOL believes
indicate a high potential for ERISA violations.

In addition to using Form 5500 Reports for ERLSA enforcement, DOL maintains
a public disclosure room so that the reports and related plan information are
available to public agencies, private organizations, and individuals for review.
In fiscal year 1997, DOL’s Pension and Welfare Benefits Administration’s
(PWBA) Public Disclosure Office received about 2,900 requests for Form 5500
Reports and provided about 12,814 documents in response to these requests.
PWBA also makes computer tapes of its Form 5500 Report information
available to individuals and groups for research purposes.

 Like DOL, IRS uses Form 5500 Report data to analyze plan f&u&l
 transactions and to target plans for examination. IRS developed its
-computerhed Returns Inventory and Classification System to select plans for
 review based on Form 5500 Report data The system also allows IRS to create

3                      GAO/HEHS-9845R        Improving    the Form   5500 Report
B-278489                                                 -

facsimiles of returns, eliminating the need to obtain paper copies from storage
files and aiming at improving ERISA enforcement through automated rather
than manual review of returns.

PBGC also uses Form 5500 Report data to monitor plan activities, including the
level of plan funding, as well as to forecast PBGC’s potential liabilities.
Because of its concern about receiving incomplete and untimely computerized
data from.IRS, in 1993 PBGC implemented a Form 5500 Report intercept
program. Under this program, IRS photocopies Form 5500 Report f%ngs of
about 1,500 of the largest and most underfunded plans and sends the paper
copies to PBGC. PBGC enters the data from these filings into its own
database. As a result, according to PBGC officials, they have more timely data
on plan funding and are better able to monitor those plans that may pose a
financial risk to the insurance program.

In addition to the agencies with regulatory authority under ERISA, SSA is also
a recipient of Form 5500 Report data. SSA receives information on name and
address changes for plan administrators and information on mergers from
pension plans. Plans file the Schedule SSA if they have participants who
separated Tom the plan during the prior reporting period but had not yet
received pension benefits. SSA uses the data to notify those participants who
apply for Social Security that they have benefits from one or more private
plans.

EFFORTS TO REDUCE REPORTING
AND DISCLOSURE BURDEN

Streamlining the Form 5500 Renort

To simplify annual reporting, lighten the burden on filers, and improve data
collection under ERISA, the principal users of Form 5500 Report data-DOL,
IRS, and PBGC-have proposed a streamlined form for the 1998 plan year. (See
enc. III.) The revised Form 5500 Report consistsof a one-page main form to
be completed by both large and small plans. While this change eliminates the
Form 5500-C/R, small plans would continue to be eligible for limited financial
reporting similar to data provided on the Form 5500-R. Improvements in the
form should also make jZling easier. For example, according to DOL, the
identifying information for most plans does not change from year to year;
therefore, preprinting this information on Forms 5500 should ease the burden
on filers and reduce reporting errors. The agencies are studying the feasibility
of preprinting this information on Form 5500 Reports after the first full filing-
year cycle using new computer-scannable forms.

 4                     GAO/HEHS-98-45R       Improving       the Form 5500 Report
B-278489

The revised Form 5500 Report is a shorter document structured to resemble
individual and corporate tax returns and capture more relevant and accurate
plan data. By eliminating information not needed for regulatory, enforcement,
or research purposes, and by developing new or revised schedules, the revised
Form 5500 Report main form is to serve as a short registration document. The
form consists of eight questions that identify the tier and type of report being
filed, the plan sponsor, and which of the 13 schedules are being filed with the
return. In addition to the revised main form, there are five new schedules and
three revised schedules with the return package. Five schedules from the
current Form 5500 remain unchanged.

DOL and IRS believe that the revised Form 5500 Report will reduce the Hi.ng
burden on plans. Taking into account the time required to learn tax law,
maintain certain tax records, and complete the main Form 5500 Report, IRS
estimates that the revised form will require a total of 21.4 million hours from
about 901,000 filers. For example, the time required to complete and fle the
main Form 5500 will decrease from about 110 hours for the form used in 1996
to about 24 hours for the revised form. Overall, the revised Form 5500 Report
is expected to reduce the total filing burden by 12 to 14 percent annually over
the HI-year life of the form.

DOL, IRS, and PBGC are to conduct a joint public hearing on the revised forms
on November 17, 1997. After reviewing and incorporating suggested changes
where appropriate, the agencies plan to issue the streamlined forms next year.

Eliminating: the Summarv Plan DescriWion
Filing Reauirement

Another recent development that will reduce the ERISA filing burden on plans
is the elimination of the summary plan description filing requirement. Effective
August 5, 1997, with the passage of the Taxpayer Relief Act of 1997, plans are
no longer required to file summary plan descriptions or related documents with
DOL. Instead, plans are required to furnish this information only upon request.
Plans must, however, continue to provide this information to participants and
beneiMu-ies. The law also instituted a new civil penalty of up to $100 per day,
not to exceed $1,000 per request, for administrators failing to provide the
requested information to DOL within 30 days.

DOL estimated that meeting summary plan description requirements had cost
plan administrators about $2.5 million and required 150,000 hours annually.
Furthermore, the government is also likely to benefit from eliminatig this
requirement. DOL has received over 150,000 summary plan descriptions and

5                     GAO/HEHS-98-45R        Improving   the Form 5500 Report
B-278439                                                 -

related filings from plans each year. Handling, cataloguing, and archiving these
documents costs DOL about $210,000 each year. While DOL plans to maintain
the approximately l-million summary plan descriptions and summary material
modifications it currently has on file, it instructed plan administrators to
irnmediately stop submitting the filings to the Department.

IMPROVING FORM 5500 REPORT PROCESSING

Previously, we and others have reported that DOL and IRS’ERISA enforcement
was hindered by incomplete, inaccurate, and untimely plan data. DOL and IRS
have made progress on correcting these problems, including increasing the
amount of information captured from Form 5500 Reports, using extensive edit
checks and follow-up contact with plans to improve data completeness and
accuracy, and attempting to process return information within 60 days after the
return is filed. Despite these improvements, problems remain. DOL reports
that while some progress has been made in improving the timeliness of
processing, untimely data remains a problem. Furthermore, the current Form
5500 Report processing system produces an unacceptable level of inaccurate
data For example, DOL reyaews of the accuracy of IRS Form 5500 Report
processing have shown that error rates consistently exceed the level of
standards considered acceptable in private industry. These processing errors
resulted in excessive filing burdens and administrative costs to plans caused by
unnecessary filing error corrections and unwarranted investigations of possible
fiduciary violations. These errors also resulted in DOL and IRS wasting limited
enforcement resources.

To overcome the problems associated with processing Form 5500 Reports at
IRS, DOL, with the cooperation of IRS, PBGC, and SSA, is developing a new
processing system to be completed by 1999. The system, called EFAST, will
rely on optical scanning technology and optical character recognition to
computerize the paper filings. Form 5500 Reports would no longer be
processed through data entry using the IRS system. Instead, a contractor
would scan the paper returns, which will be translated into computer images
and stored in a database. Optical Character Recognition software would be
used to translate both handwritten and machine-printed text into structured
computer data, with high accuracy rates. Unreadable images would be sent to
microcomputers where processing clerks would correct and reenter the unread
data Scanned Iilings would then be subjected to automated edit checks.
Automated correspondence on the nature of filing errors would be sent to filers
 along with directions for correcting deficient filings. Finally, completed IZings
 would be available to DOL, IRS, and PBGC on a monthly basis.


6                      GAO/HEHS-98-45R       Improving       the Form 5500 Report
B-278439                                                  -

DOL identified several advantages EFAST would have over the current
processing system. First, the database would contain 100 percent of the Form
5500 Report filings, including the accountant’s opinion, service provider data,
and insurance arrangement information. Currently, this information is
separated from the main Form 5500 Report and keyed into a separate database
or is not entered into a database but mainta.ined as a hard copy. As a result,
these key data cannot be easily matched to the main form. Second, the data
would be more accurate and available on a more timely basis. Lastly, the
system would be less costly and burdensome to filers and the federal
government.

In addition to improving Form 5500 Report processing, DOL expects that
EFAST will increase the number of plans filing electronically because of its
simplified procedures for preparing and submitting filings. Electronic mg
would reduce employer costs by allowing Form 5500 Report data to be
transmitted from already existing computerized data. The government would
also realize reduced costs through increased electronic filings. By eliminating
most of the initial processing steps of manually entering, editing, and correcting
data, DOL estimates that electronic filing could reduce initial processing costs
by more than 90 percent. Furthermore, the government could realize a
projected $5.9 million in additional savings each year if the current level of
7,000 electronic filings could be increased to 500,000 returns.

According to DOL officials, EFAST can be developed and operated at a lower
cost by a private contractor than the current IRS system. DOL estimates that
switching from the current system will result in a net savings to the
government of about $57.3 million over the 5year life cycle of EFAST, or $11.5
million annually. Initially, DOL planned to award a contract to one vendor to
develop and implement EFAST. However, DOL’s Inspector General raised
concerns about the risk of relying on a sole contractor to design, develop, and
implement the system. The Inspector GeneraIl was concerned that DOL would
rely on one vendor who might not be able to complete the system
satisfactorily, leaving ,DOL and the other agencies without a system for
processing the Form 5500 Reports. Consequently, DOL’s request for proposals
will result in awards to two vendors who must compete in designing and
building pilot EFAST systems. DOL will evaluate the systems and award the
full contract to the winner, who will be responsible for developing a fully
operational EFAST. DOL issued the request for proposals for EFAST design
and development on October 24, 1997, and expects to award this part of the
contract to vendors by April 1998. After selecting the winning prototype, DOL
plans to award a contract for full EFAST development and operation by April
1999.

7                     GAOAEHS-98-45R         Improving   the Form 5500 Report
   B-278489                                                 -

   EFAST is scheduled to be operational by August 1999 in order to process the
   1998 plan year returns. This deadline is important because neither DOL nor
   IRS has budgeted funds to process the 1998 returns under IRS’system.
   Furthermore, IRS’system would have to undergo major modifications to
   accommodate proposed revisions to the Form 5500 Report. Currently, DOL
   estimates that it will cost $10.3 million to develop and build EFAST. Congress
   has approved $6 million for the project, and DOL requested another $3 million
   in its fiscal year 1998 budget submission.

   AGENCY COMMENTS

   DOL officials reviewed a draft of this letter and provided technical comments,
   which have been incorporated where appropriate.



   As arranged with your office, we will make copies of this correspondence
   available to interested parties.

   If you have any questions about the information presented, please contact me
   on (202) 512-7215. Other major contributors are Frank P. Mulvey, Assistant
   Director, and George A Scott, Evaluator-m-Charge.

   Sincerely yours,




4AJane  L. Ross
   Director, Income Security Issues




    8                     GAOIHEHS-98-45R       Improving       the Form 5500 Report
ENCLOSURE I                                                                                                                                  ENCLOSURE I
                                  ANNUAL RETURN/REPORT OF
                                   EMPLOYEE BENEFIT PLAN,
                                         FORM 5500                                                                      ._ -

                    rwm““Y              Annual Return/Report of Employee Benefit Plan
                                                                (Wii     100 or more p9rbcipants)
                       w                ThisfwmisrrqubedtobeNedundersecb’onsl04and4065of(heEmplDyee                                                              &m6                -
                     P-e                 Redremmt     bwome Sea&y         Act of 1974 and sections 9039D. 9947(e), 90!57(b).
                                                                                       Cod.s,refermdtoastkCode.
                            Amnniraramr
                   PEltSbE.2lXflt~~~l
                                              and 66586) of the lntemal R-
                                                                     .seeseparatei.
                                                                                                                                                        ThisFormkOpnV~
                                                                                                                                                       1 Publiotnspeodon.
              For the calendar plan year 1999 or fiscal             p&n   year   beghning                                 ,1996, and ending                                   ,I9
                                                                                                                 , - _- - . . - .
                    If A(7)through A(4). 6, C, and/or D, do not apply to this year’s                               par IKS “se uuy
                    retumlrepwt leave the boxes unmarked.                                                          EP-lD
              A     This retumkapm is:         (7)0 Me fust return/report filed for the plan;                  (3)q   the final retumkepat       filed for the plan: cs
                                               (2) 0 an amended retumfm                                        (4)q   a short plan year retumkepon (less than 12 months).
                    IF ANY INFORMATION ON A PREPRINTED PAGE 1 IS INCORRECT, CORRECT IT. IF ANY INFORMATION IS MISSING, ADD fl. PLEASE
                    USEREDlKWHENMAlllNGTHESECHAlOGESANDINCWDETHEPREPWHCEDPAGE~~YOURCOhKWTrDRENRNIREPORT.
              B      Check here if any information reported in la. 2a. 2b. or 5a changed since tie last rammkepixt for this ptan . . . .                         . . _ _ k          c]
              C      IfyourplanyearchangedsincetielastreturnIreporLcheckhere.              . _ . . . . . _ . . . . . . . .                                       . _ . . k          0
              II     If you filed for an eneosian of time to file this rawnkawt   check here and attach a copy of the approved extension .                       . . . . k          0
              la     Name and address of plan sponsor (employer, if for a singlesmployer plan)                      lb Employer identilication                   number (EIN)
                     (Address should include room OTsuite no.)
                                                                                                                                lt   Sparsor’s telephone number

                                                                                                                                ld   Busiwss     code bee insuuctiw.          page 20)

                                                                                                                                le CUSlP issuer number

              3a Name and address of plan administizor Ci same as plan sponsor. enter “Same’3                                   P Admiita’s             EM


                                                                                                                                Zc Admi&tor*s           telephone number

              3     If you are filing this page without Vie prepinted historical plan infcdmation and the name. address, and EIN of the plan sponsw or plan
                    adminisuatw has changed since the last return/report filed for this plan. enter the information from the last return/report in Iii 3a and/or line
                    3b and compete line 3c
                  a Sponsor ___.____.._______.._.-.---....-.--....-.-.----...--------..------.-....--..----..-.-.-.  EIN ____.__.____._.____ Plan number.........
                  b Adminimaror _____.____________.___._._________f_______.___________.________.__________________   EIN __.______.________._~~..~.~.~~..~.~~~~~~~~.
                  c lf iii 3a indicates a change in the sponsor’s name. address. and EIN. is this a change in sponwship only? (Sea line 3c on page 8 of the
                    insuuctions fof tha definition of spomorship.) Enter “Yes’ or ‘No.” ä

              4      ENllTV CODE Of not show, enter the applicable code from page 8 of the inswctio&                      t
              5a Name of plan k ..______..__._.____._.___.___--..--...--..---.-.--..-*--.--.-..--..---.-.---.                    Sb Effective date of plan (mo.. day. YrJ
              .-..._....__..____................~....~.....~..--....-.~.~...-...~.~..................~...-........             .
                                                                                                                              . scThM-dii
                 All filers Ilast oompkte 9a tbmlgh w, as applioabla.                                                               plan number c
              8a 0 Welfare benefit plan 6b q Pension banefn plan
                 gf the connectcodes are not prepcinted below enter the applicable codes from page 8
                 of the insm~ctions in the boxes)




              6c Pension plan features. (If tha correct codes are not preprinted below, enter the applicable
                 pension plan feature codes from page 8 of the ir!swctions in the boxes.)                                                    I     I      I      I        I     I        1




9                                         GAO/HEHS-9845R                                    Improving                 the Form 5500 Report
ENCLOSURE I                                                                                                                                                   ENCLOSURE I


                                                                                                                                    .-
              Form 5% 0995)                                                                                                                                                 page2
               6s       Check all applicable investment arrangements below (see inzmxtions on page 9):
                        01 OMasterWSt                                             1’2)0 103-12 investment entity
                        13) 0 Comrnodcollactive trust                             14 El Pooled separate account
                        .__.____._.._.______~--.-.--.---.--.---.-------~-~.-------...--~-.-.-.----.-.----.-----.--.--...-------.-..-----..-.--.--.--~------------------.-



                   f                                                                                                                         _ Year ___.____
                        Single-employer plans enter the tax year end of the employer in which this plan year ends F Month .________Day ___-___
                        Is any part of this plan funded by an insurance contract described in Code section 4121? _ . . _ . . . . . . n Yes q No

               7
                   a


                                                    (4)   TOtal.     .   .   .   .    .   .   .   .   .    .   .   f    .   .   .    .   .   .   _   .    .   .   .
                        Retired or separated participants receiving benafm _ . . . . _ . _ . . . . . . . . . .
                        Retired or separated pardcipams entitled to future benefm . _ . _ . . . . . . . . . . _
                        Subt~l.Add~bres7a~4),~.andlc           . . . . _ . . . . . . . . . . . . . . _ . .
                        Deceased par&pants whose beneficiaries are receiving or are +itled to receive benefns . . . . . .
                        Total.Addlines7dand’le       _ . . . . . _ . , . . _ . . . _ . . . . . . . . .
                        Number of participants with account balances. (Defmed benefit plans do not complete this line item.). . .
                        Number of pe&ipants that terminated empioynwn during the p\an year with accrued bane% that were less
                        than 100% vested. . . . . . . . . _ _ . . . . . . . . . . . . . . . _ .
                    i   (7) Was any panicipant@ separated frwn sewicewirh a deferred vested benefit forwhich a Schedule SSA (Form 5500)
                             iSrequiredtobea~ched?~~insrmctio~.)            . _ . . .
                        f.?) lf ‘Yes.” enter the number ofseparxed pardciparas req&& to-be’re&&d k . . . . . . . . . - .
               9a Was &is plan ever amended since its effective dale? If “Yes.’ complete line Bb _ . _ . _ . . _ . . . .
                  If the amendment was adopted in this plan year. complete lines &through Be
                b If line 8a is ‘Yes.’ enter the date the most recent amendmentwas adopted b    Month _.____. Day ________Year _______
                c Did anyamendmantdwing thecurrentplan yaarresukinttwreuoauive reducdonofaccruadbeneMsforanyparticipants?
                                                                                             in the latest summary plan descriptions or




                9a Was this plan taminated during this planyeer or any prior plan year? If ‘Yes.’ antar the year W _____._._._.___._..____
                 b Were all the plan assets eithar diibuted to participants w beneficiaries. uansfemsd to another plan. or brought under
                   theconkolofPBGC?.            . . . . . . . _ _ . _ . . . . . . , . . . . . . . . . . .
                   WasaresoluriontotermiMremisplanadoptedduringthisplanyearoranypriwplanyear?                      . . . . . . . .
                   If line Sa w line 9s is ‘Yes.” have you received a favwsble detenninarion letter from rhe IRS far tie termination? . .
                   IflineWb‘No.‘hasadetwninationlenerbeenrequestedfrom~eIRS?.                      . . . . . . . _ . . _ . _
                   If line Sa or line 9c is ‘Yes.’ have pardcipanaand bene6ciariesbeen nod&d of the temdnationor the proposedtermination?
                   If line Sa is ‘Yes” and the plan is covered by PBGC. is the plan continuing to file a PBGC Form 1 and pay premiums
                   untilmeendofttreplanyearinwtrichaaersare~butedorbrougMunderMe~~ofPBGC)                                  . . . . . _
                 h Duing this plan year. did any uust assets rewt to me employer for which the Cede section 4980 excise mx is due?

               1Da Inthisp&nyear. wasthisplanmerged orc~datadinto                               another plan(s). orwere assetsorliibiiesttoanoth~
                    plan(s)?If’Yes.‘compl~e~beslObthrough10e                             . . . _ _ _ . _ . . . . . . . . . . . . _ W OYes                                   ONo
                    If ‘Yes, identay tha othar plan(s)                                                          e Enlpioyer identilication number(s)          d Plannumb&)
                  b Name of plan(s) b . ..______.___.._____-.------.------...--.-----------.-                 ____._.___________._.--.--.--.------.-..-..-- __._____._________._____
                                                                                                                                                            I
                    ..* .._._._..__---.----.-----.-...---.------.------.----.-.--.-.----.----..              I______.._._______
                                                                                                                              * ._.____-__--_._._..-----.-. L-~.-~~~~~~~.~~~.__~-.~~~
                  e Ifrequired.hasaForm5310-AbeenBled?                          . . _ _ .             . _ _ . _ _ _ _ . . _ _ . _ _ . . W q Yes ONo
               11    Emer me plan funding an’angement code from page 10 of the 112 Enter the plan benefit anangemem code from page 10 of the




10                                                GAOLEEHS-98-45R                                         Improving                      the Form 5500 Report
ENCLOSURE I                                                                                                                    ENCLOSURE I




                                                                                                     . . . . . . . . . . . . . .
                                                                                                    it subject to UK?minimum funding standards?
                        (If a waiver was gamed.    see insUuc@ns.) (s&is is a defmed benefit plan. leave blank).
                        If “Yes.” ccmplete Ill. 63.and (3) below
                        (1) Amount of employer contribution required for the pan year under Code section 412
                        iz) Amount of conaibution paid by the employer for the plan year. . . . . _ .
                               Enter date of last paymant by employer & Mom& _.__._.__Day _.______Year .____.
                        (3) If (1) is greater.than (.?$subtract (2) from (7) and enter the funding deficiency hefe;
              -
                               otherwise. enter -O-. (If you have a funding deficiency. file Fmn 53303
              16

              -
              17a

                                                                                                         consem Wwe any diibutions under
                                                                                                         MU@?.       . . . . . . . . .
                   b                                                                                     es without the maulred consent of the
                                   ‘Sspouse?.. . . . . . . . . . . . .                                    . . . . . . . . . . . .
                                   amendment OTtermination, do the accrued benefits of                  ant include the subsidized benefits that




                                                  I funding method was made for rBe plan year pursuant to a Revawe Procedure providing
                        automatic approval fw the change, indicate whether Ihe plan sponsw agrees to the change . . . . . . . .                     I

              21        Check Y you are applying the substantiation guidelines from Revenue Procedure 93-42, in completing lines 2la
                        duoqh2~o6eeinstwcdons).               . . . . . . . . . . . . . . . . . . . . . . . . 0
                        ryar~~tebm.enterdrenndsydmephnyea                                              t Month . ..-._. Day ..__._. Year ._..__.
                   a    Does the employer apply the Separate line of business rules of Code section 414(r) v&en testing this plan fm ths coverage
                        anddiscriminadontastsofCcdesections410(b)and4Ol(a)(4)?              . . . . . . . . . . . . . . . . .
                   b    If line 21a is “yes.’ entef the total number of separate tines of business claimed by rhe employer b __________________
                        If more than one eepaate line of business. See irwucdons fof addidcnal infcnnatfon to attach.
                   0    Does the employer apply the mandatory disaggragadon rules under Income Tax Regulations section 1.41O(b)-7W .
                        If ‘Yes,’ see itwucdons for additional information to attach.
                    d   In testing whether rhis plan setisies the coverage and disaiminatlon tests of Code seahm 410(b)and 401(a). does the
                        employer aggregete plans? . . . . _ . . . . . . . . . . _ . . . . . . . . . . . .
                    e   Does the employar restructure the plan into component p!ans to satisfy the coverage and discrimiition teesof Code
                        sections 4100 and 407(a)(4)? . . . . . . . _ . . . . . . . . . . . . . . . . . . .
                    f   If you meet eiUter of the fcill*       exceptions. check the applicable box to tail us which exception you meet and do
                        NOT complete the rest of qwsrion 21:
                        11)0 Nohigh&compensated            employee benefited under the plan at any time during the plan year:
                        (Zj ci This is a collactively bargained plan that bene!?ts only colleaively bargained employees. no more than %
                                  of winnn are profe&onal employees.
                    9   Didany~employeeperfom,swricesfortheemployeratanytimeduringthepl;lny~.                                . . . . . . .
                    h   Enter the total number ol employees of the employer. Employer includes entities aggregated with the employer under
                        Code sectim 414(b). (c). or (m). Include leased arn@oyees and self-employed i-s               . . . . . . . . .
                    i Enter the total number of employees excludable because of: flifaikrre to meet requiremems for minimum age and years
                      of service: Iu coUeaiwly bargaii   ern~oyw (3) nonresident alii who receii no earned income from U.S. snuces:
                      and(4~SODhassofserviceAastdayru!a.           _ , . . . _ . . . _ . . . . . . . . . . . . .
                   j Enterthen~berofnonexdudaMewnployeerSubPaaline21ifmmline21h                        . . . _ . . . . . . . .
                   k Do10096ofrhenonexcludableemployeesentered           online21jbenefrtundertheplan7       . . . . I?Yes        [ZI No
                      If line 21k is ‘Yes.” do NOT complete lines 211through 210.
                    I Enter the number of nonexcludable employees (line 2lj1 who are highly compensated empoyees . . _ . . _ .
                   m EmerUlenumberof-dudableemployees(line~~wtnbeneMundertheplan.                            . . . . . . _ . . .
                   n
                   0




11                                         GAO/HEHS-98-45R                            Improving               the Form 5500 Report
ENCLOSURE I                                                                                                                                     ENCLOSURE I



              Form55w (1996)                                                                                                                                                             pasea
              WetfarePlansGoToLine2SOnlhiiPage.                                                                                                                                  mYes(     No

              22a Is it of was it ever intended that thib plan qualify under Code seedon 401(a)? If ‘Yes.’ complete limes22b and 22~.                                    .




                  (If ‘Yes.” complete line 23b) (See inswcdons) . . . . _ _ . . _ . . . . . .                          , . . _ _ _
                b Were all the asses refemzd to in line 23a valued for the 1996 plan year by an independant third-pany dppraixr? . _
                t If lime 23b is ‘No.’ enter the value of the iosets that were not valued by en independent third-parry appraiser for the
                  1996 plan year. b
                d Enter the mon recent date the assets on line 23c were valued by an independeM third-party appraiser. (If mote than
                  one asset see instmcdor!s) b Month _____._..Day .--_.          Year _.____.__
                  (If this plan does not have ESOP features leave line 23e blank and go to line 24.)




                                                                                                                   (%+?“5500)? . . . * . . _ . .
                                                                                                                    25dtelov.Q . _            . . . . _ .
                                                                                                                        lefe Pert Ill of Schedule C (Fom?5500):


                                                                                                                       concerning the above termination?. .
                                                                                                                       he6 the termhated accountanUactuary
                                                                                                                       nn 5500) with a notice advising them of




                                             sdelmer other                                                 n o!kY (explm _.-. . _--__---...-_.-..--.--.---       - -.---
                                     ._.______.._.__.____-.-------.-.--.------..---.--.----------------.-.----..---.--.--.-----~--------
                        ._...___--__...__-_.------.---.--.------.--.-..---.--..---.-~.-.--.-.----.----..--..-----.------------.....---.-.------.---




               27       If line 26a is ‘No.’ complete the following quesdons. (vcu may NOT use ‘N/A’ in response to lines 27s through 27%
                        lflina2la. Z’lb, 27c.2’ld. 2’le. cr 27f is checked “Yes.‘schedulas of these itemsinthafoimexsetfozth inthe instructions
                        are required to be attached to this retumlrepm Schedule G (Form 5X0) may be used as spa&ed in the inStmcD‘ons.
                        Dudno the den veer
                    a   Didtheplanhaveasswh~dfwinvemnent?                   . . . _ . . . . . . . . . . . . . . . _ . .
                    b   Were any loans by tie @an or fixed income obligations due the plan in default as of the close of the plan year or cla&ied
                        duringtheyearasuncollectible?          . . . . . . . . . . . . . _ _ . . _ . . . . . . . .
                    0   Weceanyleasesto~~theplanwasaparryinde$dadassifiedd~~eyearasun~lectible?                                     . . . . .
                    d   Were any plan transactions or series of uansactions in excess of 5% of the current value of plan assets? . . . .
                    e    Do the notes to the tinancial statements accompanying the accountant5 opidon disclose any nonexempt transactionS
                         with parties-in-interest? . . . . . . . . . . . . . . . . _ . . . . . . . . . . . .
                    I    Did the plan engage in any nonexempt transacdow witi parties-in-interesz not repwted on line 27-a?. . . . . .
                    9    Didthepanholdqualifyingempoyersentririesthatarenotpublidy~deb?                  . . . . _ . . . . . . . .
                    h    Did the plan purchase or receive any nanpublicly traded securities that wave not appraised in writing by an Unrelated
                        thiidpa+wi&in3mon%piato&irr&pt+                                _   _ .     .   .   _   _   .   .   .‘:     .   .   .   . :    -.     .   _   .       .
                    i    Did any person manage plan azsats
                                                       _._ who had a financ@ intwest worth mora than 10%
                                                                                                       - in any party providing services




 12                                           GAOIHEHS-98-45R                                     Improving                      the Form 5500 Report
ENCLOSURE I                                                                                                                                               ENCLOSURE I




                                                                 a fidelii bond? If “Yes.” complete lines 29a(2) and 29a(3) . .                           .   .    .    .   .
                                                                              ___.-.--.__..-.---._-.-..-.-.--..-.-----.---------.--.----------.-.--.--.




              3Oa Is the plan covered under the Pension Benerit Guaranty Corporation termination insurance program?
                  cl Yes             q No             q Notdetemked
                b lf line 3Oa is “Yes* of “Not determined.” enter the employer identifcation number and the plan number used to identify it
                  Employer identiEcation number W                                           Plan number t
              31 Current value of plan assets-and liabilities at the beginning and end of Ihe plan year. Combine the value of plan assat5 held in more than one
                  ma Allocate the value of the plan’s interest in a commingled Vust containing the assets of more than one plan on a line-by-line basis unless
                  the trust meets one of the s+xific exceptions described in the instructions. Do not enter the value of that portion of an insurance contract
                  thet gueremees, during this plan year. to pay a spetic dollar benefn at a fwxe date. Round off amOuntS to the neareSt dollar; any other
                  amoimcs are subjao-to rejectkin. Plans with no assets at the beginning and the end of the plan year, emer -O- on line 311.
                                                                                                                                     m           (a~Eegirinirgof       Year (   OEndof   Year
                                                                      Assets
                a     Total noninterest-bearing cash             ................                                                         a                                 I
                b     Receivables: (1) Employer contributions ..............                                                             b01 1
                       (2) Participant contributions. ................
                       (3) Income. .....................
                       (4)othw       ......................
                       Q Lessallowancefwdwbtfulaccounts.                          ............
                       (6) Total. Add lines Jib(l) through 31b(4) and subtract line 31bQ . _ . . W
                c     General Invesamems:0) Ifwest-bearing cesh (including money market funds) . _
                       (2) certificatesofdeposit            .................
                       (J)   US.Govemmentsewrities
                                            ................
                       (4)   Cwporete debt imtnrmeno: WPrefemd                                ...........
                             0Allomw.         ....................
                        (5) Cuporae5tocks:~Preferfed.                         ..............
                             iB)Common ....................
                        0 Permeiship!joint venture interest5 ..............
                        0 Realesta~WIncomeqoducing.                                .............
                             0 Nonincome-muting                    ................
                        (3) Loans (other man to participents~secured by mwtgages: W Residential . .
                             OCanmwcial...................
                        (9) LoeostopaRicipams:~Mortgages.                               ............
                             @lolher     .....................
                      no1 otherloans.         ....................
                      01)    Value of interest in common/collective trusts. ..........
                      (12) Valueofinterestinpc&dseparateaccounts                                    ..........
                      (13) Valueofinterestinmaswuusfs                         ..............
                      (14) Valueofinterenin103-12imresrmementities                                  ..........
                      (15) Value of interest in qistemd               iwestment ccmpanies ........
                      (16) Valueof funds held in insumnce company generalaccount (unellocatedcontracts) .
                      07) other ............................................................................
                      (13) Total. Add lines 3161) through 31c(l?)                       ...........                             b
                d      Ernployer-rdated invesmrwts: (1) Employer securities .........
                        12) Empbyerrm1propeny .................
                e      Buildimqsandotherpropertyusedinplanopemtion                                  ..........
                f      Total assets. Add lines 31 a, 31b 0.3ldl3j.                    3ld(l), 3ldO.            and 31~2 . _ . .
                                                                  Liabilities
                g     BeneM claims payable _ .               _ .       .   .   . .     .   .   .   .   .   .    .   .   .   .   .
                h     OperatingpayableS.            .   .    ,    .    .   .   .   .   .   .   .   .   .    .   .   .   .   .   .
                  i   Acquisition indebtedness . .                .    _ . . . . .             .   .   .   . .      . .     _ .
                j     Other tiabaities . . . _ .                  .    . . . _ _ .             .   .   .   _ .      . .     . .
                k     Total liibiWs. Add lines 3lg                             . .             .   .   .   . .      . .     .




13                                         GAOIHEHS-98-45R                                         Improving                    the Form 5500 Report
ENCLOSURE I                                                                                                                                      ENCLOSURE I


              Form5500 (I9991                                                                                                                 p-6
              32 Plan income. expenses, and changes in net assets for the plan year. lnckale ail income
                                                                                                      andexpensesof the #an, including any In&s) w
                   seeya~zs              rf?J, a.“d any paymentskceipts toMom instaance carriers. Roamd ofl amMmtstr,the m?ase5tdollsramyomer
                                    J       yecbon
                                                      Income
                a conbtbutions:
                   (1)   Received or receivable from:
                         0    Employers . . . _ . . _ . . . . . . . . _
                         (8) Participants. . . . _ . _ . . . . . . . . . .
                         (C) omars . . . . . . . . . . . . . . . . . . . .
                   a,    Noncashcor&utions        . . . . . _ . . _ . . _ . .
                   (3) Totalcontributions. Add lines 32a(lHru, @), (C)and lime 32aQ . . . . b
                b     Eamings~~~-
                      (1)    hterast
                                Interest-bearing cash (m&ding money market funds)                             .   .   _   .   .       .
                                Cerciticatesofdeposit.   . . _ . . . . . .                                    .   .   .   .   .       .
                                U.S. Government securities . _ . . . . . .                                    .   .   .   .   .       .
                                Corpomtedebtinstmments.         _ . . . . - .                                 .   ~   .   .   .       .
                                Mongegelwns.        :.    . . . . . . . . .                                   .   .   .   .   .       .
                                other loam.      . . . . . . . . . . . .                                      .   .   .   .   .       .
                                otherinkre5t     . . . . . . . . . . ~ .                                      .   .   .   .   .       .
                                Total imeren Add line9 32b(lMA) through (GI . .                               .   .   .   .   .   ä
                         Dividends: (A) Preferedstock . _ . . . . _ _ .
                         fBl Commonstcck.           . . . . . . . . . . .
                         (0) Total dividends. Addlines32b@KAI and 0 _ , .
                         Rents . . . . _ . . . . . . . . . . .
                         Net gain (ass) on sale of as-sew Vu Aggregate proceeds .
                         IB) Aggregakwqingamomfseeinstwtions)                    _ . .
                          (Cl Subtraa(B)from@landenterresuIt             . . . . .
                          Unrealiiappredatkm(dep+aciatkm~ of assets.             . . _
                          Net imfemem gain #oss~from commonkollective mnts .
                          Net lrmsmmt gain iloss~ horn pooled separate accounts
                          Netinvestmentgain~~fmmmastertfu9ts                   . _ . .
                          Net inwsmwnt gain (loss) from 103-12 ifweatment entities
                          Net investment gain iloss) from registered investment cornpi
                       rlncana.        . . - . . . . . . . . . . . .
                 d Total income. Add all amoumsincd!snn@)andentertotal                 .......                                    b
                                                        Expen-
                 e Ben&t payment and payments to provide benefmz
                   0)      DirecUytoparticipaWsorteoelidaries       ............
                   (2) Toin9urancecatdet9fortheprov&onofofts.                          ........
                   (3) other ......................
                   (4) Total payments. Add line9 32e(l) through 32eO              ........                                        l
                    flrnensespan5e        .....................
                    g Adminisuativeexpenee9:~)SaladesandaUowances.                                .........
                      (2) Aecountingfees ...................
                      (3) Actwialfees.     ...................
                       (4)    Connactadminisuacor                 fees.   ...............
                        fs) lnvesxmematicqandmanagammtfaea                           ...........
                        (6) Legalfees.    ....................
                        #   Valuaticnlappraisal fees.          ................
                        0   Ttusteesfees/wpensas @cMing uevel. seminars, meeting5. ek.) ....
                        0   other..       ....................
                      (lOI  Totaladmii            expense~.Addliies32gpl)through32g(S)               .....
                    h Totalexpemes.Addfi32eWk32f.aod32g~0)                                 .........                                  D
                     i NetincomeOoss).Suboacttine32hfmmline326.                            .........                                  b
                    j Tramifersto(from)mepn~9w~W%dons)                          ............



               33       Did any employer sponsaing the plan pay any of the adminisuative expenses of the plan that were ~4 reputed on Iii
                                                                                            fz3




 14                                         GAO/HEHS-9%45R                                               Improving                        the Form   5500 Report
ENCLOSURE II                                                                                                                                  ENCLOSURE II
                                       RETURN/REPORT OF                                                              -
                                     EMPLOYEE BENEFlT PLAN,
                                          FORM 5500-C/R                                                              ._ -

                                                            Return/Report of Employee Benefit Plan                                                            OMBNos.‘IZlC-Wl6
                 Form    55004/R                                                                                                                                   121o.cms
                      DepamrrmofmeTeantly                                    (Wii    fewer than ‘100 participants)
                     m?mu-S
                      oe!xmandLabu
               PemMnamw-BeneflaMrmmDaom
                                                           ThisR~isn3quimdmberiladerwcciw5Yotmd4s36tilkeEmp(gse
                                                                 ekmmmulncwlesewrityWdl914nd-6co3D,~(e).
                                                                        6057(b),ad6053@)Ofcke--COdU.
                                                                                                                                                                   1996
                                                                                                                                                               ThiSFC+lllbOp.S
                 Pens&m&am Gusamy catpmcul                                        l See separate instwctiws.                                                  toPtdeltlspew
               For the    calendar   plan   year   1996    or fscai   plan   year   beginning                             ,1999,        and   ending                             * 39
                   If A(7) through A(4J. 6. C, and/of D da not apply to this year’s return/report,      For IRS Use Only
                   leave the boxes unmarked.                                                            EP-ID
                   You must check either box A@ or A(6J,whii            is appficabla. See imttuiions.
                A This return/report is:                                                               (51Form SSOO-Cfkrcheck           here . .                      El
                                                                                                           (Camp!ateonly pages 1 and 3 through B.l~&de ;eciion’
                   (7) 0 the firat rettmlrepon filed for the plan:                                         603913ri1et-s
                                                                                                                       seemstnlc(ionsal page5.)
                   12, q an amended retumfrem                                                          I6J Form5500.Rfilercbeokhere           . _                     IJ
                                                                                                           (Compkte only pages Y and 2. Detachpa& i :h&& 6’
                   (3J q the final retumlreporr filed for the plan: OF                                     beforefiling.)II yau cnecked box (1101f3). you must file a
                   14) q a short plan year return/report (less than 1.2months).                            Fwm 5500.C.(Seapage 6 of the imtmcticm.)
                   IF ANY INFORMATIONON A PREPRINTEDPAGE 1 IS INCORRECT,CORRECTIT. IF ANY INFORMATIONIS MISSING, ADD Il. PLEASE USE
                   REO INK INHEN MAKING THESE CHANGESAND INCLUDETHE PREPRINTEDPAGE 1 WITH YOUR COMPLiZll REKlRN(REpORT.
                B Check here if any information reported in la, 2a. 2b. or Sa changed since the last retum/repwr for this plan . . . . . . . . b q
                C IfyowplanyearchangedsincethelastretumIrepoi%checkhere                    . . . . . . . . . _ _ . _ . . . . . . . .tO
                D If you filed for an extension of time to file this retumlrepwt check here and attach a copy of the approved extension . . . . . b [7
                la Name and address of plan sponsor (employer, if for a single-employer plan)                         lb Employer identification number (Elw
                   (Address should include room or suite no.)
                                                                                                                                   lc Sponsor’s telephone number

                                                                                                                                   ld Business code (see insuuctions. page 17)

                                                                                                                                   le CUSIP issuer number

                Ze Name and address of plan admir&tmtOr (if same es plan sponsor. antec “Same”l                                    Zb    Administrator’s EIN

                                                                                                                                   2s Administrator’s telephone number
                                                                                                                               I
                3     If you are filing this page without the preprinted historical plan information and the name, address, and EIN of the plan sponsor 01 plan
                      administrator has changed since the last re(um/repoR filed for this plan, enter the infonation from the last reuun/repOrt on lines 3a and/or
                      3b and complete line 3~.
                    a Sponsor .____._________.___.~..~~~~~..~~..~~~~.~..~.~~~...~...~.~~~~~.~~~.~~.~~.~~~~~~.~.~~  EIN _._.____________._  Plan number _..___._._
                    b Administrator ._._..._.._._~__..~~~~~~..--~.~-.~~~~.~.~~~~...~~~.~~~.~.~~~~~~~~.~~~..~~....~ EIN .__.___..___.._._...-.--..--..-.-.--. ___._._
                    c If lime 3a indicates a change in the sponsor’s name. address, and EIN, is thii a change in sponsorship only? (See line 3o on page 8 of tha
                      insbuctions for the definition of sponsorship.) Enter “Yes” or “No.” b

                4      ENTITY   CODE.
                                   (If not shown.         enter applicable code from page 8 of the instructions.) F
                Se Name of plan b _.____._____.._________...--..-.--.-.-.-.-----..--.-----.--.--.---------.-              _        5b Effective        date of plan (mo.. day, r.1
                __.__..._____..___*_---.-.-..-.---.---.---.--..-...--...--.-.-.-..-..---.-.-----.-..--.---.---.--
                                                                                                                                   SC Threa-digit
                                                                                                                                      alan number t
                   AS Glen must complete 6a through Sd, as applicable.
                83 0 Welfare benefir plan                   6b q Pension benefa plan
                   (If the cofrect codes are not preprinted below enter the applicable codes from                         I
                   page 8 of the inmuctions in the boxes.)



                6c     Pension plan features. (If the correct codes are not preprinted below, enter the applicable
                       pension plan feature codes from page 8 of the instmcdons in the boxes.)


                W 0        Fringe benefit plan. Attach Schedule F (Fam 5500). See instrucdons.
               Cautiom
                     A petwhy
                            forMelab orincomplete
                                               Iilingofthisretum/repm
                                                                    willbeassesedunkssreasonable
                                                                                             causeis embhished.
               Underpenakiesof perjtq and other par!aUiasset IMh in the imVuRiON.I deobre that I haveexaminedUli returmrrpah moludii aazompmyirgwhedu!B and
               ~andto~heofmyknawledgeandbelief.kiZouecortenandcmnplere.

               SiicfBnployerlplansPMKor        b ---*.------.-.--...-      ** -----_._-.-_____..._____* _-_._-____-__.____._--.-.--.------. Date b ______._______._.__.___
               Typew pint nameOf individualsfgnirg above ----._-.-_.-.-.--.__-.--.-----.--.---.---.-.---.--.         ._. .__.__._.._._.___...---.-.---..----.-.--.---.---.-.---
               sigllattw d planadmbisoaor w _._.________.__.____---.-.--.---.------.----.-----------.-------.--------...--.---.----                Date b _____.._.__._.._._..__
               TjpewprintmmedimlividlJatsiiabove
               ForRqaworkRedu&mAUNoticc.seepsgc1ofthektsW&ms                                                   Cat. No.       1035lK                           Fam %G&cm                tlsss)



                                            GAOEIEHS-98-45R                                 Improving                the Form                          5500 Report
ENCLOSUFtE-II                                                                                                                                  ENCLOSURE II




                                                                                                            .   .   .     .    .   .   .   .       .   .   .    .    .        .
                                                                                                                        -Day _.____..____ Year _._.___.___._
                                                                                                                        banef~ for any participant? _ _ .
                                                                                                                         latest summary plan description or




                                                                 -._...-.__.-_.__.__.------.     and end _._____._____.______-----....of the

                14       For this plan year. enter: a Plan income .__..____..__._____
                                                                                    _                                              d Plan cormibudons .._____.____..______-.-
                                                   b   Expenss      . . . ..__._.___....______                                     e Total beneSts paid .._-._.--_-_.-___---__
                                                   E Net income 00s~) Isubtract 14b from 14a)            ___________._____._
                                                                                                                                                           I         I            I
                1s       fou may NOT use N/A in response to lines 1Sa thmugh 150. If you check ‘Yes.’ you must enter                       a                   Yes           No           Amount
                         jollar amount in tie amount column. During this plan yeatz                                                                                  I            I
                     a   Was this plan covered by a fidelity bond? . . . . . . . . . . . . . . . . _                                           .
                     b   f line 15a is ‘Yes: entef the name of the surety company fi __.__.._______._.._.-.--..----..--.--.                    _
                     c   was there any 1~s to the plan. whether or not reimbursed. caused by fraud or dishonesty? . .                          _
                     d   Nas~anyle~~a~~o~~~~~~~a~~~~,~f~.~~~~~~5
                          ~aidemployeesofmeemplopr..anyownerdalWborrmreintPrestinmeemployer.or~esdanys~?                  . . .
                     e    Wasthereany loan01axtembn of czeditby tha planto the employer.any fiduciary,any of &a Fm most highlypaid
                          rnployeesof~heemployer.anyowoerofalO%orm~bueresrintemployer.a~ofKlywlchpersom?
                      f   Did the plan acquire OThold any employer secudty or employer real property? . . . . . . .
                     9 Hasthe plangranted anextension on anydelinquentloanowad tome plan? . . . _ _ . .
                     h Were any participant contriixdons Dansmittad to the plan fnwe than 31 days after receipt or
                          Mhholding by the employer?. . . . . . . . . . . . . . . . . . . . . .
                       i Were any loans by the plan or fixed income obligations due the plan classiC?d as uncollectible or in
                          defaoltasofthecloseoftheplanyex?            . . . . . . . . . . . . . . . . . .
                     j Has any plan fiduciary had a financial interest in excess of 10% in any party providii sewices to the
                          planorreceivedanyVlingofvaluefromanysuchparty?.             . . . . _ . . . _ _ . .
                      * Dkl the plan at any time hold 20% or more of its assets in any single seunity. debt. mongage. parcal
                          Ofrealenate,orparmershi~cimventureimer~?              . . . _ _ . . . _ . . . . _ .
                        I Did the plan at any time engage in any Uansaction or series of related ~nsactions invohring ZD% OT
                           mofeofthecummvalue0fplana55ets?.              . . . . . . . . _ . _ . . . . _ .
                     m weremereanynarashrn~~m~m~p~~~~~~m~~~~a~~~~~~
                      n Were there any puchases of nonpublic& traded seaAMes by he plan tha value of which was set
                           withwtanappraisalbyanindependentthirdparty?          . . . _ . . . . . . . . _ . .
                                                                                                                                                                         ,            ,
                16a      IS the plan coverad under tha Pension &n&t Guaranty Corpc&on termination irwmnce pugam?       0 Yes      aNo     nNot-
                     b   If Iii 16a is “Yes’ or ‘Not da*zrmined,’ entar the employer idendiicadon number and the plan number used to ideM@ it
                         Employer identir?cationnumber b                                              Plan number b




 16                                          GAO/HEHS-98-45R                                     Improving                    the Form                     5500 Report
ENCLOSURE II                                                                                                                          ENCLOSURE II




               Form5500-C/R(1996) Comf&te page 1, and pages 3 thmugh 6 only, if y0” are fi8ng Form 55M-C. (see insb’wtion~ on page 13.)                                      Paga 3
                8e Check all applicable investment arrangements below. [See insmxtions on page 12.):
                   fl) q Masteruust                      (2) q 10312 investmeM entity
                   (8) q Common!collecdve trust           (4) Cl Pooled separate account




                    . . . . .. . . . . . . .. . . . . .. .. ... .... .. . . ...-.-~---...-~-..-.-..~.-.--..-.~.-.--..-.--~--~.--.-..~....~..~.-.---.----.~..-.-.---~-.-........---.----.-~.
                 f Single-employer plans enter the tax year end of the employer in which this plan year ends b Month .____.__Day _____.__.Year _.___.._
                 g Is any part of this planfunded by an insurance contractdescribed in Code section 412W? . _ . . _ . . _ . c] Yes q No
                 h If line 8g is “Yes,” was the pan subject to the minimum funding standards for either of the priw 2 plan years? . _ . q Yes q No
                ‘la Total pardcipants: (1) At the beginning of plan year t ..___.____.-.__..__.-..-.-- (2) At the end of plan year F __.._.___.____..__..._____.
                  b Enter number of participants wifh account baLances at the end of the plan year. [Defined benefits plans do not complete this
                    item.) * . . ..___._......__._..~~.-.~~~~~-.~~.~..~.-~..
                  c Number of pardcipants that terminated employment during the plan year with acawd benefits that were less than 100% vested w ..___...,__

                 d (1) Were any panicipants in the pension bene8t plan separated from service with a deferred vested benefit for which
                       a Schedule SSA (Form 5SW) is required to be attached? . . . . . . . . . . _ _ . . .                            .

                    (2) If “Yes.” enter the number of separdted participants required to be repoited l
                8a Was this plan ever amended since its effective date? 11“Yes,” complete line 8b and, if the amendment was adopted in
                    this plan rear. complete lines 8c through Be _ _ . . . . . . . . . . . . . . _ . . _ 1 . .
                 b If line 8a is “Yes.” enter the date the most recent amendment was adopted b Month ______ Day ______Year ___._
                 c Did any amendment duringthe current plan year result in the reuoactive reduction of accrued benefits for any panicipant?
                 d During this plan year. did any amendment change the information contained in the latest summary plan description or
                    summary description of modifications available at the time of amendment? . . . . . . . . . . . . .
                  e If line 8d is ‘Yes.” has a summary plan description or summary description of modifications that reflects the plan
                    amendments referred to on line 8d been both furnished to participants and filed with the Depamnent of labor?       . .
                Sa Was this plan terminated during thisplan year or any prior plan year? If ‘Yes.” enter year b ____..__ ___.___________ _..
                 b Were all plan assets either distibuted to pardcipants or beneficiaries, transferred to another plan, or brougnt under the
                   conuol of PBGC? . . . . . . _ . . . . . _ . . . . . . . . . . . . .                                            _ . . .
                 c Was a resolution to terminatethis plan adopted during this plan year or any prior plan year? . . . . _ . _ _
                 d If line Sa (H line SC is “Yes.’ have you received a favorable determination letter from the IRS for the termination? . .
                 e If tine Sd is “No.’ has a determination letter been requested from the IRS?. _ . . . . . . . . . . . .
                 f If line 9a or line SC is ‘Yes.” have panicipants and beneficiaries been notified of the termination or the proposed
                   termination?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                 9 If line Sa is “Yes” and the plan is covered by PBGC. is the plan continuing to file a PBGC Form 1 and pay premiums
                   until the end of the plan year in which assets are distributed or brought under the control of PBGC? _ . . . . .
                 h During this plan year. did any trust assets revert to the employer for which the Code section 4980 excise tax is due? .




               1Oa Was this plan merged or consolidated into another plan(s). or were assets or liabilities transferred to another plan(s) since
                   the end of the plan year covered by the last retum/repoK Form 5500 or 5500-C that was aed for this plan (a during
                   rhfs plan year if this is the fim retum/mpon)? If ‘Yes.” complete limes lob through 1Oe . . . . . . _ . . .
                   If ‘Yes.” identify the other plan(s):                                      c Employer idendiicadon numb&s)                   d Plan numb&s)
                 b Name of plan(s) b ___..._._____.._._..__.___  __._.__.____._.____.____ . . .._.-________..-..-.....--..--.-~...---..        _.__._..___.______._-.-

                    ..______._____..-___.-.-.--.~.-.-.-.----.----.--.-.----.--.-.---..-.-..        .___._._..__._.._.__.-----..---.--.-.----.-       .-.-... -* -...--...-      ----




17                                          GAOLHEHS-9%45R                                    Improving           the Form                   5500 Report
‘ENCLOSURE II                                                                                                                                                                 ENCLOSTJREII ~



                Fum 55W-C/R 0996)                  Complete           page       1. and    pages         3 through       6 only,       if you       are tiliig       Form          5500-C.                      page4
                Welfare         Plans   Do Not Complete           Lines          15 Through        25. Skip        To Line       26 on page              5.

                %a      lf this is a defined benem plan sub@ to the minimum funding standards for tbii plan year. is Schedule B (Form 5500)
                        req~tabeattached?Ofthisisadervledcontributianplan,leaveblanU                    ‘. . . . _ . . . . _ . . .
                        If “Yes.” attach Schedule B (Form 55001.
                      b lfthisis a defmed contribution plan O.e..money purchase ortargetbenefi& isitwbjecttothe    minimumfunding standards
                        (if a waiver was granted. see in.stmcdons)? (If dtis is a defined benem plan, leave blank)
                        If “Yes.” compiete (l), 0, and (3) below.
                        (1) Amount of employer conuibution required for the plan year under Code section 412
                        (2) Amount of contribution paid by the employer for the plan year. . . . . . .
                                Enter date of lest payment by employer W Month I____ Day _.___. Year ____.
                        (2) If 0) is greater than (21. subtract (2) from (1) and enter the funding deficiency
                                here. Other&e, enter -O-. (If you have a funding deficiency. rile Form 5330.) _ .
                         Has the annual compensation of each pardcipanttaken into account under tie current plan



                          (2)If fl) b ‘Yes.” did rhese contracts contain a requirement tJ?atthe spouse consent before any distributions under
                             the cormact are made in a form other than a qualified joint and suruivor annuity? . . . . . _ . . . .
                      b Did the plan make disbibutions or loans to married participants and beneficiaries without the required consent of the

                                                                                                                                                                             idized benefits mat




                 19       If a charge in fhheactuarial funding method was made for the plan year pursuant to a Revenue Procedure providing
                          automatic approval for the change. indicate whedw tie plan sponsor/administrator agrees to the Change . . _ .
                 20       Is the employer electing to compute minimum funding for this plan year or either of me two immediately preceedirig
                          plan years u&ng the u&ition rule of Code section 412(ll(l l)? . .- . . . . . _ , . _ . .- . _ _ 1                                                                              201
                                                                                                                                                                                                         - .-    I
                                                                                                                                                                                                                 _-..
                 21       Check if you are applying the substantiation guidelines from Revenue Procedure 93-42. in completing lines 21~1thou b;h
                          210 (see insauctions).        .     _   .     .    .     .   .   .   _     .     .   .     .   .   .     .     .      .    .    .      .   .   .     .     .   .   .   .   _
                          If you checked the box. enter the SrStday of the plan year for which data is being submitted l Month . ..Day ___Year .._ ‘!
                           Does tie employwapply me separate line of business rules of Code section 414(r)when testing tiis plan for the coverage .t
                           and diitimination teN requirements of Code sections 410(b) and 401(a)(4)?. . . _ . . . . . . . . .
                           If line Zla is “Yes.’ enter the total number of separate limesof business claimed by the employer W ___._._..____...._
                           if more than one separate line of business. see instmcdons for additional information to attach.
                           Does the employer apply tie mandatory d&aggregation rules under Income Tax Regulations section 1.410(b)-7(c)? If
                           “Yes,” see insrntctions for additional information to attach . . . _ . . _ . _ . _ . _                       . _ . .
                           In testing whether this plan satisfies the coverage and diicrimination tests of Code sections 410(b) and 401(a). does
                           the employer aggregate plans?. . . . . . . . . _ . . . . _ . . . . . . _ . . . . .
                           Does the employer resnucture me plan into componem plans to satisfy the coverage and discrimination test of Code
                           sections 4100 end 401(alM? . . . . . _ . . . . . . . . . . . . . _ . . . . . . .
                            If you meet either one of the following exceptions. check the applicable box to tell us which exception you meet and
                            DO NOT complete me rest of question 21:
                            (1) q No highly compensated employee beneSted under me plan at any time during the plan year:
                            (2) q This is a collectively bargained plan that benefm only collectively bargained employees, no more than 2% of
                                     tiom are professional employees.
                               Did any leased employee perform ssruicesfcrtbe     employer at anytime duringthe plan year? . . . . . . .

                                Enter the total number of employees of the employer. Employer indudes entities aggregated with me employer under
                                Codesection
                                          414(b).
                                              (CL or (m). Indude leased employees and self-employed individuals .        _ . . . . . . .
                                Enter the total number of employees excludable under the plan because of: (1) failure to meet requirements far minimum
                                age end yam of Sawice: (‘2)collecdvely bargained employees: (3) nonresident aliens who receive no earned inCOme
                                fromU.S.sowces:and~4~SOOhoursofserviceilastdayrule            _ _ . . . . . . . _ . . . . . . .




 18                                             GAOiHEHS-98-45R                                                Improving                                 the Form                        5500 Report
ENCLOSURE II                                                                                                                       ENCLOSURE II



               FormSXXFCIR(1996)                Complete page 1, and pages        3 through   6 only,   if you   are fiiii   Fom       5500-C.


                 j Enter the number of nonexcludable employees. Subhact line 21i From line 2lh . . . _ . ,                         . . _ . .                 .
                 k Do 160% OFthe nonexcludable employees entered on line Zlj beneffi under me plan? . _ . q                        Yes 0 No
                    if lime Zlk is “Yes,” 00 NOT complete lines 211Chrough210.
                  I Enterthe number of nonexcludable employees GineZlji whoare highly compensated employees ,                      .    _ .      .   .       .
                 m Enter the number of nonexcludable employees who benefit under the plan . . . . . . .                            .    . .      .   .       .
                 n Enter ure number of employees entered on line 21m wflo are highb compensated employees . .                           . .      .   .       _




               22a 1s ir or was it ever intended that this plan qualify under Code secdon 401(a)? If ‘Yes,” complete lines 22b and 22~ .
                                                                                . . . . . . . . P Month ____..___Year _. .._._..


                      (If ‘Yes.” complete line 29b.I (See insCrucdons.). . _ . . . . . . . . . . . . . . . , . .                                             .
                    b Were all Cheassets referred to on line 22a valued for the 1996 plan year by an independent third-pany appraiser?.                      .
                    e If line 23b is “No.” enter the value of the assets that were noCvalued by an independent
                      third-pany appraiser for the 1996 plan year . . , . . . . . . . _ . . b
                    d Enter the mosf recent date the assets on line 23~ were valued by an independent third-p
                      one asset see instrucclons.) t Month ___.__._,Day ____.____     Year _.____.__
                      (If this plan has NO ESOP features. leave line 23e blank and go to line 24.)
                    e If dividends paid on employer securities held by the ESOP were used to make payments
                       on ESOP loans, enter the amOuM of the dividends used to make the payments . . b




               25a Is rhe plan covered under Che Pension Eenefn Guaramy Corporation termination insurance
                   program?..........................                                                             nYes                      ~NO              c]Notde-
                 b IFline 2Sa is “Yes” or “Not determined.” emer the EIN and the plan number used to identify it.
                   EIN t                                                 Plan number W
               26           You may NOT use N/A in response to any line 26 item. If you check “Yes.” you must enter a dollar
                            amount in the amount column.
                            During this pian year:
                            Wasthisplancoveredbyafidelhybond?           . . . . . . . . . _ . . . . . . . .
                            If line 26a is ‘Yes,’ emer the name OFthe surety company l ___..________._..___.___..-.-..______.___.
                            Was there any loss to the plan, whether or not reimbursed. caused by fraud or dishonesty? _ . .
                            Was there any sale. exchange,or lease of any property between the plan and the employer, any fiduciary.
                            any of the five most highly paid employees of Cheemployer. any owner of a 10% or more interest in
                            theemployer.M-rela~~ofanysuchpenons?.               . . . . . . . . . . . _ . . . .
                    e       Was there any loan or extension of credit by the plan to the employer. any fiduciary, any of the five
                            most highly paid employees of the employer. any owner of a 10% or more interest in the employer. or
                            reladvesof any such persons? . . . . . . . . . _ . . . . . . . . . . . . 26e 1
                    f       Didthe planacquire orholdanyemployersecwityor          employerreal propeny?     . _ . . . . . 261 !
                    9       HasmeplangantedanenewiDnM1anyd~nquemloanowedtorheplan?.                          . . . _ . _ _
                    h       Were any panicipant contributions CnXrsmktedto the plan more than 31 days afCerreceipt or withholding
                            by the e+loyer? . . . . . . . . . . . . . . . . . . . . . . . _ . .
                        i   Were anv loans by Cheelan or fixed income obligations due the plan classified as uncollectible or in
                            defaulC&ofthe&eoftheplanyaar?             . . .- . . . . .’ . . . . . . . . . . .
                    j       Has any plan fiduciary had a financial imerest in excess of 10% in any per& providing setvices to the
                            planareceivedanythingofvaluefhnnanysuchpany?               , . _ . . . . _ . . . . . .
                    k       Did the man at any time hold 26% OFmore of its asserS in any single security. debt. mortgage, par&
                            of~~~.orpamrership~ointventureintwens?                  . . ; .-.       _ .-.    . . .-.-       .- . .
                             Did rhe plan at any time engage in any transaction or sedes of reJated transaaions involving 2fI% or
                            mcreoftheaarentvalueofptanassers?.           . . . . . . . . . . . . _ . , . . .
                            Ware there any noncash conufbufiw made to the plan whose value was set tirhout an appraisal by
                            anim5apendemthiiparty?.          . _ . . . . . , . _ . . . . . . . . . . . .
                            Were there any pwchases of nonpublicly traded securkies by the plan whose value was set without an
                            appratsalbyanfindependenCth+dparty2.         . . . . . . . . . . . . _ . . . . .
                             Has me plan reduced or FailedCo provide any benarit when due under the terms OFthe plan because
                               _.     >e   ~_
                             0,InsmllPemasseIs1
                                                ~._._... . . . .   .  .   .   . .   .  .  .  .  .   .  .   . .  .   .  .    .  .   .I2601                ,       ,




19                                           GAO/HEHS-98-45R                           Improving                 the Form                 5500 Report
ENCLOSUREII                                                                                                                                                         ENCLOSUREII


              Form550&C/R(1996)                        Complete      page   1. and   pages        3 tltmugh       6 onl$Sjou           are tiling                   Form        5566-C.       page6
              27        Current value of plan assets and IiaMlities at the beginning and end of the plan year. Combine the value of plan ass& held in more than
                        ooe mat Allocate the value of the plan’s intefest in a commingled trust containing the assets Of mwe than one plan on a ii-by-line basis
                        unless the bus meek one of the specific exceptions describad in the inslructions. Do not enter the value of the @on of an irwnance
                        comet that guarantees during this plan year to pay a specific dollar benefn at a future date. Round off amounts co the nearest dollar.




                   a Cash.............................
                   b Receivables . . . . . . . . . . . . . . . . . .                                              .   .. _ .       .   .        .       .
                   c Inve9rments:
                     (1) U.S. Government securities ....................
                     (2) Corporate debt and equity instruments .................
                     0) Real estate and magages lother than to participants) ............
                     (4) Loan5 to participanrs:
                          A Mortgages ........................                                                                                                      1(4)A 1               1
                          Bother ..........................
                     Is) other ...........................
                     (6) Total invastments. Add limes27c(l) through 2k6l         ............                                                           ä           27d0i
                   d Buildings and other propeny used in plan operations . . _ . . .                              .   _ .          .    .       .           .        27d    i
                   e     0merass.a . . . . . . . . . . _ . . . . . . . . _ . . . . . .
                   f     Total assets. Add lines 27a. 27b. 27c(S). 276. and 27e.          .   .     _ .       .   .   .   .    .   .    .       . W
                                                                    liabiities
                         Payables .           _ . _ . . . _ . . _ . .                     .   .     _   .     _   .   .   .    . .      .       . .
                         Acquisition indebtedness . . . . _ _ _ . .                       .   .     _   _     .   .   _   _    . .      _       . _
                         otherliabilities.     . . _ .       _ . . . . _ .                .   .     .   .     _   .   _   _    . .      .       . .
                         Total liabilities. Add lines 279 UUOugh27i. . . _ .              .   .     _   .     .   .   .   .    . _      .       . ä
                         NetassetsSubtractline27jfromline27f           . . . _            .   .     .   .     .   .   .   _      .      .       . W
              28         Plan income. expenses. and changes in net assets fw the plan year. Include all income and expenses of the plan including any m&s) Or
                         separately maintained fund(s) and any payments/receipo to/from insurance carders. Rwnd off amounts to rJ~enearest dollar. Any orJwr
                         amotmk are subjea to rejection.
                                                                   Income
                   a Contiudons received or receivable in cash From:
                      (5) Employer@)fincluding ccwibuticms on behalf of seJf-employed individuals) . . . . . _
                      B Employees . . . . . . . . . . . . . . . . . . . . . . . . .
                      (3) others...........................
                      (4) Add lines 28a(l) through 2EaI31 . . . _ . _ . . . . . . . . . . . _ _
                   b Noncash contributions. Enter the total Of lines 28a(4) and lines 2Bb in colun’~ (b)        . . _ . _
                   c Earningsfrom investments @Wrest. dividends. renk. royalties) _ . . _ . . . . . . .
                   d Netrealizedgain(loss)onsaleorexchangeofasseo               . _ . . . . _ . . . . _ . .
                   e otherincome (specify)          b _.___.._._.____.......----.-..--..-..----.--.---.----.-.--.-.-----....-----.
                    f Totalincome.Addlines28bthrOugh2Ee.             . . . . . . _ . . _ . . . . . . W

                       g Diibution of benefm and payments to provide benefrs:
                         (1) Direc?Jyto paniClpatIk or their beneficiaries   _ . _ . _ . . . _ . . .                                        _ .                 .
                         (2)omer...........................
                         (3) Total disnibudon Of benetirs and payments to provide benefits . . . . . . .                                    .       .           .
                       h Adminissrativeexposes Waries. fees. commissions. inwance premiums)                    _ . _ .                      .       .           _
                       i Other expertsas (specify) b ___._____._____.____------..------.-..----.--.-.-----..-.-------..------.
                         Total expenses. Add Iii 289 U6ough 2Bi . _                . .                              . . .                   .
               :         Net income floss). Subtract line 28j from line 28f.  A -          ,:A                L -           2




20                                           GAO/HEHS-9%45R                                   Improving                        the Form                                     5500 Report
ENCLOSURE III                                         -     ENCLOSURE III
                PROPOSED ANNUAL RETURN/REPORT OF
                     EMPLOYEE BENEFIT PLAN%
                            FORM 5500




(207013)

21                     GAO/HEHS-98-45B   Improving   the Form   5500 Report
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