Justification of Non_material Change

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Justification of Non-Material Change
Internal Revenue Service
OMB Control number 1545-1610 
Form 5500 Annual Return/Report of Employee Benefit Plan

Change to Form 5500 Schedule SB

The Pension Relief Act of 2010 provided pension funding relief for single-employer plans by providing an extended period for single-employer defined benefit plans to amortize certain shortfall amortization bases.  

Form 5500 is a Tri-Agency form shared between Department of Labor OMB Control Number 1210-0110, 
Pension Benefit Guaranty Corporation (PBGC) OMB Control Number 1212-0057 and Internal Revenue Service OMB Control Number 1545-1610.  Since this is a Tri-Agency form, the three agencies coordinate the information collection submissions by March 30, 2018 to OMB in order to maximize the information available to OMB.

The Internal Revenue Service (IRS) is submitting the current, 2018 version, of the Form 5500, Annual Return/Report of Employee Benefit Plan, and instructions as a non-material/non-substantive change request. (OMB Control Number 1545-1610, which currently is scheduled to expire on October 31, 2019).  The IRS is not making any program changes to the forms and instructions for 2018.  

Lines 42 and 43 of the Schedule SB will not be used for plan years beginning on or after January 1, 2018, because there are no installment acceleration amounts or installment acceleration amount carryovers after 2017.  Therefore, IRS is removing Lines 42 and 43 from the Form 5500 Series Schedule SB.

    • IRS uploaded a new version of the Schedule SB
    • IRS is revising the estimates such that for the “Annual Return/Report” IC (See below for greater detail):
        ◦ Responses increased from 828,000 to 833,000 (+5,000) due to additional filings
        ◦ Burden hours increased from 338,000 to 339,000 (+1,000) led by the filing increase
        ◦ Labor costs decreased from $137.129 million to $132.661 million (-$4.468 million) Decreased wage rates (due to an adjustment in how the Department of Labor calculates the overhead cost input for wage rates) led the cost burden to decrease.



2018






Form 5500 Package
PRA-numbers

8/30/2017



IRS + SSA






Number of Respondents (total)
833,000





Number of Respondents for Small Entity
676,000












ICR







2018 - Requested
Program Change Due to New Statute
Program Change Due to Agency Discretion
Change Due to Adjustment in Agency Estimate
Change Due to Potential Violation of the PRA
Previously Approved
Annual Number of Responses for this IC
833,000
0

5,000
0
828,000
Annual IC Time Burden (Hours)
339,000
0

1,000
0
338,000
Annual IC Cost Burden (Dollars)
132,661,000
0

-4,468,000
0
137,129,000

.





Short Statement
The number of filings increased, while the wage rate decreased slightly.  The wage rate adjustment results from changes to the Department of Labor's methodology for calculating overhead.  The net effect of the increase in the number of filings and the decrease in wage rates is a slight increase in the hour burden and a slight decrease in the cost burden.









Annual Cost to Federal Government






THIS DOCUMENT IS RELATED TO THE FORM 5500 NOTICE AND NOTICE OF RULEMAKING
(RULE: RIN: 1210-AB06, OMB Ref #: 1210-A135)