GAO 

United States Government Accountability Office

Report to the Chairman, Committee on 

Education and Labor, House of 

Representatives 

PRIVATE PENSIONS

Additional Changes 

Could Improve 

Employee Benefit 

Plan Financial 

Reporting 

November 2009 

GAO-10-54 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

November 2009

PRIVATE PENSIONS

Additional Changes Could Improve Employee Benefit 

Plan Financial Reporting

Highlights of GAO-10-54, a report to the 

Chairman, Committee on Education and 

Labor, House of Representatives 

Sponsors and service providers report confusion over Labor’s new reporting 

requirements for the Form 5500 Schedule C and over how plan expenses are 

defined. Specifically, they have questions regarding the distinction between 

eligible and ineligible indirect compensation, that is, which types of indirect 

compensation must be reported on the Form 5500 (compensation that 

qualifies as “eligible” does not have to be reported). Labor’s guidance on its 

Web site thus far has been limited, and, according to sponsors and service 

providers GAO spoke with, has raised additional questions that remain 

unanswered. Specifically, Labor has not provided sufficient guidance for 

sponsors and providers to accurately determine what elements of 

compensation qualify as eligible indirect compensation (fees or expense 

reimbursements charged to investment funds and reflected in the value of the 

investment). Therefore, interpretations have been left up to sponsors and 

providers and may result in a range of reporting practices, causing Labor to 

receive inconsistent and incomplete data. In addition to the new Form 5500 

requirements, Labor has proposed another regulation on service provider fee 

disclosure (its 408(b)(2) regulation), but it has not yet been finalized. 

Sponsors and service providers GAO talked with stressed the importance of 

coordinating this initiative with the new Form 5500 requirements. Doing so 

may reduce the burden and the cost to service providers of making changes to 

their data gathering and reporting systems and clarify for plan sponsors the 

information they need to understand and compare the fees charged by various 

service providers. In GAO’s discussions with Labor officials, they agreed that 

there was a need to coordinate the two regulations, and said that although 

they are working to finalize the proposed 408(b)(2) regulation, it is uncertain 

when it will be published. 

Labor officials told GAO that they do not have specific plans for using the data 

received as a result of the new Form 5500 requirements and will wait to see 

what information is reported before deciding what to do with the data. 

Although Labor’s new requirements are meant to ensure that plan sponsors 

obtain the information they need to assess the compensation paid to service 

providers for services rendered to the plan, the Form 5500 may not provide 

useful information to Labor and others. Because plan sponsors are likely to 

report indirect compensation in varying formats, it is unclear how Labor will 

be able to compare such data across plans. In addition, GAO previously 

reported that the information provided to Labor on the Form 5500 has limited 

use for effectively overseeing fees paid by 401(k) plans because it does not 

explicitly list all of the fees paid from plan assets, yet these types of fees 

comprise the majority of fees in 401(k) plans. For example, plan sponsors are 

not required to explicitly report asset-based fees that are netted from an 

investment fund’s performance, even though they receive this information for 

each of the mutual funds they offer in the 401(k) plan. Thus, despite the 

changes to the Form 5500, the new information provided may not be very 

useful to Labor, plan sponsors, and others. 

The Department of Labor (Labor) 

collects information on fees 

charged to 401(k) plans primarily 

through its Form 5500. Labor 

issued final regulations in 

November 2007, making changes 

to, among other things, Schedule C 

of the Form 5500. Labor put 

emphasis on reporting the indirect 

compensation paid to service 

providers and between service 

providers, in an effort to capture all 

of the costs that plan sponsors 

incur. Congress and others are 

concerned that Labor’s rules could 

result in duplicative and confusing 

reporting. Given these concerns, 

GAO was asked to examine the 

new requirements and determine 

whether Labor’s new requirements 

will provide (1) clear and 

understandable guidance to plan 

sponsors and (2) useful 

information to Labor and others. 

GAO analyzed Labor’s regulations 

and interviewed Labor and other 

officials about disclosure and 

reporting practices. 

What GAO Recommends

GAO recommends that Labor 

(1) provide additional guidance and 

require all indirect compensation 

be disclosed on the Schedule C, 

(2) coordinate the implementation 

of its new Form 5500 requirements 

with the publication of its 408(b)(2) 

regulation, and (3) require that 

asset-based fees be explicitly 

reported. Labor generally agreed 

with GAO’s recommendations, 

although the agency proposes 

evaluating the data after reporting 

begins to determine how best to 

address indirect compensation. 

View GAO-10-54 or key components.

For more information, contact Barbara D. 

Bovbjerg at (202) 512-7215 or 

bovbjergb@gao.gov. 
Page i GAO-10-54 

Contents 

Letter 1

Background 3 

Labor’s New Reporting Requirements Remain Unclear to Sponsors, 

but Coordination with Other Regulatory Initiative May Help 11 

Labor Is Unclear about How It Will Use the New Information 

Reported on the Form 5500, and the Form 5500 May Continue to 

Not Provide Useful Fee Information to Labor and Others 16 

Conclusions 19 

Recommendations for Executive Action 20 

Agency Comments and Our Evaluation 21 

Appendix I Comments from the Department of Labor 23 

Appendix II GAO Contact and Staff Acknowledgments 26 

Related GAO Products 27 

Tables 

Table 1: Distinction between Direct and Indirect Compensation 6 

Table 2: Types of Reportable Indirect Compensation and Criteria 

for Qualifying Indirect Compensation as “Eligible” for 

Exemption 7 

Figures 

Figure 1: Disclosure of Plan Fee Information from Service 

Providers to Plan Sponsors, Which Then Report the Fees 

to the Federal Government 10 

Figure 2: Examples of the Layers of Compensation Paid to Entities 

for Services to a Defined Contribution Plan 13 

 Annual Reporting on Form 5500 
Abbreviations 

FAQ frequently asked questions 

ERISA Employee Retirement Income Security Act of 1974 

IRC Internal Revenue Code 

IRS Internal Revenue Service 

DFE direct filing entities 

PBGC Pension Benefit Guaranty Corporation 

EIC eligible indirect compensation 

SEC Securities and Exchange Commission 

SPARK Society of Professional Asset-Managers and Record 

 Keepers 

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The published product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

copyrighted images or other material, permission from the copyright holder may be 

necessary if you wish to reproduce this material separately. 

Page ii GAO-10-54 Annual Reporting on Form 5500
Page 1 GAO-10-54 

 

United States Government Accountability Office

Washington, DC 20548 

 

November 5, 2009 

The Honorable George Miller 

Chairman 

Committee on Education and Labor 

House of Representatives 

Dear Mr. Chairman: 

The Department of Labor (Labor) uses its Form 5500 as a tool to monitor 

and enforce plan sponsors’ responsibilities under the Employee 

Retirement Income Security Act of 1974 (ERISA).1

 By filing the Form 5500, 

plan sponsors satisfy the requirement to file annual reports concerning, 

among other things, the financial condition and operation of plans. In 

2004, Labor’s ERISA Advisory Council Working Group reported that the 

Form 5500 Annual Return/Report (Form 5500), as it was then structured, 

did not reflect the way that the defined contribution plan fee structure 

works. At that time, only those fees that were billed explicitly and were 

paid directly from plan assets were deemed reportable.2

 The Advisory 

Council concluded that Form 5500s filed by defined contribution plans 

were of little use to policy makers, government enforcement personnel, 

plan sponsors, and participants in terms of understanding the cost of a 

plan, and recommended that Labor modify it so that all fees incurred 

either directly or indirectly by these plans would be reported. As a part of 

three regulatory initiatives to improve disclosures provided to various 

parties, Labor issued final regulations in November 2007, making changes 

to facilitate a transition to an electronic filing system and to update the 

annual reporting forms, effective for the 2009 plan year.3

 With these 

1

Under Title I of ERISA, the “administrator” or “plan administrator” is the plan official 

responsible for meeting certain reporting and disclosure obligations. However, for the 

purposes of this report, we use the term “plan sponsor” to encompass the responsibilities 

of the plan administrator and plan sponsor (i.e., the employer who sets up the plan). 

2

The Form 5500 includes information on a plan’s sponsor and the number of participants, 

among other things. The form also provides more specific information, such as plan assets, 

liabilities, insurance, and financial transactions. 

3

A “plan year” is a 12-month period designated by a retirement plan for calculating vesting 

and distribution, among other things. The plan year can be the calendar year or an 

alternative period (e.g., July 1 to June 30). Filers have a normal deadline of 210 days after 

the end of the plan year to submit their Form 5500; therefore, a calendar year filer would 

have to file by July 31 of the next year. 

 Annual Reporting on Form 5500 
 

regulations, Labor made changes to the reporting of service provider 

compensation on the Schedule C of the Form 5500.4

 Labor also has 

proposed regulations on two other initiatives that are awaiting review and 

approval by the current Secretary of Labor.5

Congress and others are concerned that Labor’s rules for reporting 

compensation are more extensive than necessary and could result in 

duplicative and confusing reporting. In addition, questions have been 

raised by industry experts over whether the new changes impose 

significant costs on service providers as they track and disclose the 

additional information, and whether these costs will be passed on to plan 

participants. Given these concerns, GAO was asked to examine the new 

requirements in Labor’s final regulations and form revision and to answer 

the following questions: 

1. Do Labor’s new requirements provide clear and understandable 

guidance to plan sponsors? 

2. Will the new requirements provide useful information to Labor and 

others? 

To determine whether Labor’s new requirements provide clear and 

understandable guidance to plan sponsors, we interviewed nine plan 

sponsors. We randomly selected three plan sponsors from the Form 5500 

database, and selected six plan sponsors referred by industry 

associations,6

 plan service providers, well-known industry experts, 

industry associations, researchers, and Labor. We also reviewed related 

documents from Labor, such as its compliance assistance and technical 

guidance information, and frequently asked questions (FAQ) from its Web 

site that are meant to aid employers in complying with the new regulations 

and forms revision. In addition, we reviewed ERISA and relevant 

 

4

Service providers are hired by plan sponsors to provide administrative services to the plan. 

Some plans hire a service provider, such as a mutual fund company, a bank, or an 

insurance company, that is able to provide an entire range of administrative services to a 

plan. Other plans receive asset management and recordkeeping services from a service 

provider, while providing other services with in-house staff. 

5

On January 20, 2009, the Obama Administration issued a White House memorandum that 

ordered all proposed and final regulations that had not been published in the Federal 

Register to be withdrawn for review and approval. 

6

The information and opinions we gathered from talking with plan sponsors is not 

representative of or generalizeable to the universe of plan sponsors. 

Page 2 GAO-10-54 Annual Reporting on Form 5500
 

regulations governing 401(k) plans, including Labor’s proposed 

regulations, to understand current and proposed annual reporting 

requirements. We interviewed and collected documentation from those 

affected by the new Schedule C requirements, to get their views on 

whether these new requirements will provide useful information to Labor, 

plan sponsors, and others. We also interviewed and collected 

documentation from a variety of stakeholders, including plan sponsors, 

service providers, industry and consumer associations, attorneys, and 

Labor. We obtained these stakeholders’ views on the new requirements 

and identified any challenges sponsors might face. We also collected and 

analyzed information on the Form 5500 from other sources, such as the 

reports and testimonies from ERISA Advisory Council Working Groups. 

Finally, we reviewed previous work done by GAO to provide an update on 

Labor’s efforts regarding the Form 5500 and its regulatory initiatives.7

We conducted this performance audit from October 2008 through 

November 2009 in accordance with generally accepted government 

auditing standards. Those standards require that we plan and perform the 

audit to obtain sufficient, appropriate evidence to provide a reasonable 

basis for our findings and conclusions based on our audit objectives. We 

believe that the evidence obtained provides a reasonable basis for our 

findings and conclusions based on our audit objectives. 

Background 

ERISA ERISA, among other requirements, establishes the responsibilities of 

employee benefit plan decision makers (fiduciaries) and the requirements 

for disclosing and reporting plan fees. ERISA is designed to protect the 

rights and interests of participants and beneficiaries of employee benefit 

plans and to outline the responsibilities of the employers and 

administrators who sponsor and manage these plans. Under Titles I and IV 

of ERISA and the Internal Revenue Code (IRC), pension and other 

employee benefit plan administrators are required to file information 

annually on the financial condition and operations of the plan. The 

requirements for completing the Form 5500 vary according to the type of 

plan. If a company sponsors more than one plan, it must file a Form 5500 

 

7

GAO, Private Pensions: Government Actions Could Improve the Timeliness and Content of 

Form 5500 Pension Information, GAO-05-491 (Washington, D.C.: June 3, 2005). 

Page 3 GAO-10-54 Annual Reporting on Form 5500
 

for each plan. Additionally, ERISA and the IRC provide for the assessment 

or imposition of penalties by Labor and the Internal Revenue Service (IRS) 

for plan sponsors not submitting the required information when due. 

There are various types of Form 5500 filers. Filers are classified as either 

single-employer plans, multiemployer plans, multiple-employer plans, or 

direct filing entities (DFE). In general, a separate Form 5500 must be filed 

for each plan or DFE. Single-employer plans are maintained by one 

employer or employee organization. Multiemployer plans are established 

pursuant to collectively bargained pension agreements negotiated between 

labor unions representing employees and two or more employers and are 

generally jointly administered by trustees from both labor and 

management. Multiple-employer plans are maintained by more than one 

employer and are typically established without collective bargaining 

agreements. DFEs are trusts, accounts, and other investment or insurance 

arrangements in which plans participate and that are required to or 

allowed to file the Form 5500. 

Form 5500 Annual 

Return/Report 

The Form 5500 was intended, in part, to measure employers’ compliance 

with ERISA’s fiduciary and funding provisions, among other requirements.8

It provides information about the financial condition of the plan, annual 

amounts contributed by participants, and the plan’s investment income. 

The form also provides information on plan characteristics, such as plan 

type (defined benefit or defined contribution),9

 method of funding, and 

numbers of employees and participants as well as the number of 

employees who are excluded from the plan for various reasons. 

The Form 5500 is the principal source of information about employersponsored pension and welfare benefit plans that is available to Labor, 

IRS, and the Pension Benefit Guaranty Corporation (PBGC), and is the 

 

8

The Form 5500 includes information on the plan’s sponsor and the number of participants, 

among other things. The form also provides more specific information, such as plan assets, 

liabilities, insurance, and financial transactions. Filing this form satisfies the requirement 

for the plan administrator to file annual reports concerning, among other things, the 

financial condition and operation of plans. Labor uses the Form 5500 as a tool to monitor 

and enforce plan sponsors’ responsibilities under ERISA. 

9

Traditional defined benefit plans generally provide a fixed level of monthly retirement 

income that is based on salary, years of service, and age at retirement, regardless of how 

the plans’ investments perform. In contrast, benefits from defined contribution plans are 

based on the contributions to and the performance of the investments in individual 

accounts, which may fluctuate in value. 

Page 4 GAO-10-54 Annual Reporting on Form 5500
 

reporting vehicle for about 730,000 such plans. Accordingly, the Form 5500 

constitutes an integral part of each agency’s enforcement, research, and 

policy formulation programs. It is also a source of information and data for 

use by other federal agencies, Congress, and the private sector in 

assessing employee benefit, tax, and economic trends and policies. The 

form also serves as a primary means by which plan operations can be 

monitored by participants, beneficiaries, and the general public. 

Labor, IRS, and PBGC jointly developed the Form 5500 so that employee 

benefit plans could satisfy (1) the provisions of the IRC that apply to taxqualified pension plans and (2) the annual reporting requirements under 

ERISA. Labor enforces ERISA’s reporting and disclosure provisions and 

fiduciary responsibility standards, which, among other things, concern the 

type and extent of information provided to the federal government and 

plan participants and ensure that employee benefit plans are operated 

solely in the interests of plan participants. IRS enforces standards that 

relate to such matters as how employees become eligible to participate in 

benefit plans; how they become eligible to earn rights to benefits; and how 

much, at a minimum, employers must contribute. PBGC insures the 

benefits of participants in defined benefit private pension plans. 

Labor’s Regulatory 

Initiatives 

Labor’s regulatory initiatives to expand disclosure requirements cover the 

following three distinct areas: (1) disclosures by plan sponsors to assist 

participants in making informed investment decisions;10 (2) disclosures by 

service providers to assist plan fiduciaries in assessing the reasonableness 

of provider compensation and potential conflicts of interest;11 and (3) more 

efficient, expanded fee and compensation disclosures to the government 

and the public through a substantially revised, electronically filed Form 

5500 Annual Return/Report.12

Labor implemented the third initiative on expanding fee and compensation 

disclosures on the Form 5500—issuing regulations revising the Form 5500 

in November 2007—in an effort to facilitate the transition to an electronic 

 

10See 73 Fed. Reg. 43013, proposed rules of July 23, 2008, on “Fiduciary Requirements for 

Disclosure in Participant-Directed Individual Account Plans.” 

11See 72 Fed. Reg. 70987, proposed rules of December 13, 2007, on “Reasonable Contract or 

Arrangement Under Section 408(b)(2) – Fee Disclosure.” 

12See 72 Fed. Reg. 64709, final rules of November 16, 2007, on “Annual Reporting and 

Disclosure.” 

Page 5 GAO-10-54 Annual Reporting on Form 5500
 

filing system; reduce and streamline annual reporting burdens; and update 

the annual reporting forms to reflect current issues, agency priorities, and 

new requirements under the Pension Protection Act of 2006.13 According to 

officials at Labor, these changes were made to increase transparency 

regarding the fees and expenses paid by employee benefit plans. Labor 

also wanted to ensure that plan officials obtain the information they need 

to assess the compensation paid for services rendered to the plan, taking 

into consideration revenue-sharing arrangements among plan service 

providers and potential conflicts of interest. 

Fee/Compensation 

Reporting on the Form 

5500 

For the 2009 plan year Form 5500, the new Schedule C requires plan 

sponsors to classify the fees they pay service providers as either “direct” 

or “indirect” compensation. As shown in table 1, fees are separated into 

those paid directly by the plan to a service provider and those received by 

a service provider indirectly from another service provider. 

Table 1: Distinction between Direct and Indirect Compensation 

Direct compensation Indirect compensation 

• Compensation received by a plan service provider directly fro

plan assets. 

m • Any payment received by a plan service provider from so

other than directly from the plan or plan sponsor, if received in

connection with services provided to the plan (either monetary 

or nonmonetary) or in connection with the service provider’s 

position with the plan, such as meals, entertainment, or free

travel. 

• Does not include anything the employer pays from corporate 

assets, since employer-paid fees do not reduce plan assets. 

urces 

Source: Department of Labor, Annual Reporting and Disclosure Revision of Annual Information Return/Reports; Final Rule and Notice, 

72 Fed. Reg. 64709 (2007) codified at 29 C.F.R. § 2520.103-1. 

Plan sponsors must also determine whether any indirect compensation is 

reportable (i.e., “ineligible” or “eligible” for exemption from Labor’s 

reporting requirements, as shown in table 2). Most indirect compensation 

starts out as having to be reported on the Schedule C. 

 

13The regulations also postponed the effective date of the electronic filing requirement 

under 29 C.F.R. § 2520.104a-2 to apply to plan years beginning on or after January 1, 2009. 

The form revisions are to be fully implemented as part of the switch under the ERISA Filing 

Acceptance System (also known as EFAST) to a wholly electronic filing system for the 

2009 reporting year. 

Page 6 GAO-10-54 Annual Reporting on Form 5500
 

Table 2: Types of Reportable Indirect Compensation and Criteria for Qualifying Indirect Compensation as “Eligible” for 

Exemption 

Definition Reported on Schedule C 

Eligible indirect 

compensation (EIC) 

EIC includes fees or expense 

reimbursements charged to investment 

funds and reflected in the value of the 

investment or in the return on investment 

(e.g., finders’ fees, “soft dollar” revenue, 

float revenue, and/or brokerage 

commissions). 

If a fee falls into this category, no amount needs to be reported 

because these fees are eligible for exemption. An alternative 

reporting method can be used, which allows sponsors to report 

only that there was EIC paid and the entity that provided the 

required written disclosures.a

Ineligible indirect 

compensation 

• Reportable gifts, meals, and 

entertainment. 

• Fees paid to a recordkeeper by an 

investment provider on a per 

participant or per plan account basis. 

Yes, along with the specific amount, because it is ineligible for 

exemption. 

The service provider receiving the compensation does not have 

to provide an actual amount. It may simply provide a formula 

through which the compensation is determined. 

Source: Department of Labor, Department of the Treasury, Pension Benefit Guaranty Corporation, Revision of Annual Information 

Return/Reports, 72 Fed. Reg. 64731 (2007). 

Note: Amounts charged against the fund for ordinary operating expenses, such as attorneys’ fees, 

accountants’ fees, and printers’ fees, are not reportable indirect compensation for Schedule C 

purposes. 

a

Written disclosures for a bundled arrangement must separately disclose and describe each 

component of indirect compensation that would be required to be separately reported if the provider 

were not relying on this alternative reporting option. 

However, indirect compensation can readily become “eligible” indirect 

compensation (EIC). For indirect compensation to be EIC, and thus not 

reported on the Schedule C, the plan sponsor must receive written 

materials from the service provider that describe and disclose the 

following information: 

1. the existence of indirect compensation, 

2. services provided for this compensation, 

3. formulas used to calculate the value of this compensation, 

4. who received the compensation, and 

5. who paid the compensation. 

When indirect compensation does qualify as “eligible,” sponsors have the 

option of using an alternative reporting format that, according to Labor, is 

simpler than the format that must be used to report ineligible indirect 

compensation. With the alternative reporting format, plan sponsors only 

have to disclose the name, address, and employer identification number of 

Page 7 GAO-10-54 Annual Reporting on Form 5500
 

these service providers.14 Whether a plan sponsor receives the required 

written disclosures is the key to whether indirect compensation is 

reportable on the Schedule C. 

According to Labor, reporting indirect compensation as EIC is an option 

that the sponsor may choose instead of reporting under the rules 

applicable to other indirect compensation. Indirect compensation does not 

qualify as EIC if a service provider does not provide the required 

disclosures to the plan sponsor. In this case, the plan sponsor is required 

to report the available information from the service provider on the 

Schedule C, such as the identity of the service provider and nature of the 

services provided. The plan sponsor is also required to list the service 

provider for failing to or refusing to provide necessary information. 

However, if the plan sponsor does receive information from the service 

provider upon request, the plan sponsor has the option of reporting the 

indirect compensation as EIC (i.e., reporting only that indirect 

compensation was paid and who provided the disclosure). 

Many of the fees and expenses associated with mutual fund investments 

are not explicitly reported on the Form 5500. According to a 2004 report 

by Labor’s ERISA Advisory Council Working Group on Plan Fees and 

Reporting on Form 5500, many 401(k)15 and 403(b)16 plans have moved 

toward using mutual funds as an investment option. With mutual funds, 

the plan service provider takes the investment management fees17 and 

 

14The alternative reporting option does not apply to all indirect compensation; it only 

applies to the indirect compensation that is eligible for that treatment. It has to be a 

particular type of compensation, with the most common example being compensation that 

reduces the value of the investment—for example, 12b-1 fees (fees related to marketing) 

that are paid to broker/dealers to sell the fund. The alternative reporting method is 

generally only available for service providers receiving indirect compensation exclusively. 

If a service provider receives both direct and indirect compensation, the alternative 

reporting option is not available and more in-depth information must be disclosed on the 

Schedule C. 

15“401(k) plans” are private pension plans that allow workers to save for retirement by 

diverting a portion of their pretax income into an investment account that can grow taxfree until withdrawn in retirement. 

16“403(b) plans” are similar to 401(k) plans but are offered only to employees of hospitals, 

educational institutions, and certain nonprofit organizations. 

17Companies that manage mutual funds or other investment products charge investment 

fees for all services related to operating the fund. Such practices are not limited to the 

mutual fund industry, but rather apply to any pooled investment vehicle where fees are 

intrinsic to the underlying investment and not explicitly billed or paid by the plan. 

Page 8 GAO-10-54 Annual Reporting on Form 5500
 

expenses of managing the mutual fund directly from the mutual fund 

earnings, and these fees are not explicitly reported to plan sponsors. 

Without data on mutual funds, the largest component of most 401(k) 

retirement plans, Labor is unable to fully assess the impact of service 

provider fees on investment returns. In our November 2006 report, we 

recommended that Congress consider a statutory change with explicit 

disclosure requirements for service providers.18 Without such a change, we 

concluded, Labor will continue to lack comprehensive information on all 

fees being charged directly or indirectly to 401(k) plans. Figure 1 

illustrates the disclosure of plan fee information from service providers to 

plan sponsors, which then report the fees to the federal government. The 

figure also shows that some fees are reported to the Securities and 

Exchange Commission (SEC), not to Labor. 

 

18GAO, Private Pensions: Changes Needed to Provide 401(k) Plan Participants and the 

Department of Labor Better Information on Fees, GAO-07-21 (Washington, D.C.: Nov. 16, 

2006). 

Page 9 GAO-10-54 Annual Reporting on Form 5500
 

Figure 1: Disclosure of Plan Fee Information from Service Providers to Plan 

Sponsors, Which Then Report the Fees to the Federal Government 

Source: GAO analysis of Department of Labor regulations.

Retirement plan sponsors are required to report the fees

charged by service providers to Labor, except those already 

reported to SEC, which collects data on fees charged by 

mutual funds.

SERVICE PROVIDERS

Recordkeeping

Customer

Service

Investment

Management

Retirement

Plan

Sponsor

Additionally, many plan fiduciaries enter into bundled arrangements19 with 

other plan service providers for recordkeeping or other administrative 

services that typically do not entail explicit charges to the plan. In a 

“bundled arrangement” plan, service providers such as recordkeepers and 

trustees are often compensated for their services to the plan (1) through 

 

19A “bundled arrangement” is when a plan sponsor hires one service provider to provide a 

full range of services directly or through subcontracts to provide services to its employees’ 

retirement plan. 

Page 10 GAO-10-54 Annual Reporting on Form 5500
 

either subtransfer agent fees,20 12b-1 fees,21 or other administrative fees22 or 

(2) through what are called “revenue-sharing arrangements.”23 As a result, 

fees and expenses are not paid from plan assets, but rather from the 

expenses of one of the plan’s investments (e.g., a mutual fund’s operating 

expense, which is shared with the plan’s service provider). 

Labor’s New 

Reporting 

Requirements Remain 

Unclear to Sponsors, 

but Coordination with 

Other Regulatory 

Initiative May Help 

Sponsors Report That 

Labor’s New Requirements 

Remain Unclear 

Even though Labor has provided guidance on their recent changes to the 

Form 5500 Schedule C, plan sponsors and service providers reported that 

they were unclear about Labor’s new reporting requirements. Specifically, 

plan sponsors and experts told us that they have questions regarding the 

distinction between eligible and ineligible indirect compensation, and 

several said that they were unclear about what types of compensation 

qualified as EIC. A recent survey of service providers also reports 

 

20Subtransfer agent fees are paid by mutual funds to 401(k) providers who perform the 

recordkeeping function for 401(k) plans. They are charged against the mutual funds and 

thereby reduce the participants’ investment returns and, ultimately, their benefits. The 

payments are intended to support transfer agent and shareholder servicing activities by the 

recordkeeper. These activities include, for example, keeping track of share ownership at 

the plan and participant account level, and conveying information about the mutual fund to 

the plan and participants. 

21Fees related to marketing and compensating brokers to sell the fund are known as 

12b-1 fees. 

22Administrative fees are charged to administer the plan as a whole, and these fees can 

include trustee, audit, legal, investment consulting, and communication fees. 

23“Revenue sharing” is a mutual fund distribution practice. These payments are paid from a 

plan’s investments to other providers without going through the plan. A feature of these 

payments is that, while they are not paid from a plan’s assets, the payments are “shared” by 

the plan’s service providers, often without the knowledge of the plan sponsors, fiduciaries, 

and participants. 

Page 11 GAO-10-54 Annual Reporting on Form 5500
 

confusion regarding compliance. An industry association representing 

service providers surveyed its membership, asking if sponsors and service 

providers understand Labor’s new Schedule C requirements enough to 

effectively comply.24 Although only a small number of members 

(19) responded to the survey, 74 percent of the respondents (14) reported 

that Labor has not provided sufficient guidance for providers to accurately 

determine what elements of compensation qualify as EIC. 

Plan sponsors and experts were also concerned about how much 

compensation should be disclosed. Figure 2 illustrates the potential 

difficulty. For example, a plan pays a recordkeeper direct compensation to 

administer the plan, which includes sending new participants a welcome 

packet about the plan. Part of the compensation that the recordkeeper 

receives goes toward paying a fulfillment vendor to make the welcome 

packets and send them to participants.25 The fulfillment vendor, in turn, 

pays a printer to print and collate the packets. As a result, there are 

multiple layers of payments involved, and sponsors and experts were 

unsure of how much of the indirect compensation they should be required 

to disclose. They were also concerned that the compensation would be 

reported multiple times on the Schedule C. For example, amounts paid by 

the recordkeeper to vendors would already be included in the overall 

amount paid by the plan sponsor to the recordkeeper. 

 

24The Society of Professional Asset-Managers and Record Keepers (SPARK) is a 

professional association servicing mutual fund companies, banks, insurance companies, 

investment advisors, third-party administration, recordkeepers, and benefit consulting 

firms in the retirement plan industry, including most major service providers. SPARK 

conducted a survey of its members in early 2009 regarding their opinions on the new 

reporting requirements for the Form 5500 Schedule C. The survey was completed by 19 of 

SPARK’s 57 institutional members, all but 1 of which provide Form 5500 preparation 

services. The responding firms, however, collectively serve approximately 174,000 plans 

with nearly 34 million participants. 

25A fulfillment vendor can provide a number of services for a plan, including customer 

service; call center; data entry; and order processing, such as mailing participant 

statements and welcome kits. 

Page 12 GAO-10-54 Annual Reporting on Form 5500
 

Figure 2: Examples of the Layers of Compensation Paid to Entities for Services to a Defined Contribution Plan 

Source: GAO analysis of examples provided by the Groom Law Group.

Financial

Advisor

Independent 

company gives

investment advice 

to participants

Transfer Agent

Processes

transactions, such 

as exchanges

between funds, 

investments, and 

withdrawals

Fulfillment Vendor

Provides a variety of 

services for a plan, 

including data entry;

call centers; and order 

processing, such as

mailing participant 

statements and 

welcome kits

Locator

Service

Third-party vendor 

specializes in 

finding “lost”

participants

Commercial 

Printer

 Vendor prints

welcome packets

and envelopes

Mutual Fund Company

Can offer everything from

a single investment product

for inclusion in an employersponsored retirement plan to 

“turn-key” options that include 

management of the various

investments included in a

comprehensive plan

401(k) 

Defined 

Contribution 

Plan

Recordkeeper

Service provider 

who administers

the plan

Administers

plan by

contracting

with a ...

Who buy

services

from a ...

Who buy

services

from a ...

Page 13 GAO-10-54 Annual Reporting on Form 5500
 

Concerns have also been raised about how to report noncash 

compensation.26 Sponsors and service providers said that they were 

uncertain about the new Schedule C requirement to report noncash 

compensation, which is also a type of indirect compensation. Sixty-three 

percent (12 of 19) of members who responded to the industry survey 

reported insufficient guidance on this issue. For example, one plan 

sponsor explained that he was not sure how he would handle, or whether 

he would even report, the noncash compensation benefit (food, 

entertainment, and making contacts) of attending a marketing event 

designed to facilitate future sales of ERISA plans. Respondents (service 

providers) in the industry survey were asked to imagine that their 

organization sponsored a similar event for customers and potential 

customers. Respondents were evenly split on how they would 

communicate the value of the benefit to attendees for purposes of 

Schedule C reporting. Some respondents believed the event would not be 

reportable, while others said they would provide its full value to all 

attendees and leave it to them to decide whether the event is reportable. 

Uncertainty Regarding the 

Reporting of Indirect 

Compensation May Result 

in Incomplete Data Being 

Reported to Labor 

Because service providers may have difficulty determining what elements 

of compensation qualify as EIC, different interpretations and reporting 

practices may ensue and could result in inconsistent and incomplete data 

being reported to Labor. For example, some sponsors may interpret 

certain compensation as reportable, while others may not, leaving Labor 

with incomplete information from some plans. In addition, since amounts 

categorized as EIC will not be reported, Labor will have no way of using 

these data to determine whether the amounts being paid by plans are 

reasonable and will be unable to compare these types of compensation 

across plans. According to Labor, not having to report amounts 

categorized as EIC is intended to simplify the annual reporting process 

and reduce the burden for plans and service providers for the types of 

indirect compensation that commenters said would be difficult and 

potentially expensive to allocate to individual plans. 

Industry experts and plan sponsors with whom we spoke said additional 

guidance on reporting indirect compensation may make it easier for plan 

sponsors to comply. Labor has posted a set of FAQs on its Web site 

regarding the changes that are specific to Schedule C reporting. However, 

 

26Noncash compensation can be gifts, meals, or entertainment for the purpose of 

facilitating the sales or promotion of an ERISA-related plan. 

Page 14 GAO-10-54 Annual Reporting on Form 5500
 

industry officials with whom we spoke said that although these FAQs 

answered many questions, additional questions have stemmed from 

reading the FAQs that have not yet been addressed. Labor officials told us 

that they were reviewing and prioritizing the additional questions they 

have received to develop further guidance. 

As filing deadlines for the 2009 plan year draw closer, sponsors and 

service providers have told us that they still have questions about the new 

Schedule C requirements, and may need more time to comply. Labor has 

already noted on its Web site that there is flexibility regarding reporting 

for the 2009 plan year, stating that as long as sponsors receive a statement 

from their service providers that, despite a good-faith effort, they were 

unable to provide the newly required information to them, sponsors will 

not be required to report those service providers on the Schedule C. 

Coordination with Other 

Regulatory Initiative Could 

Alleviate Compliance 

Burden 

According to industry experts and plan sponsors with whom we spoke, the 

coordination of one of Labor’s other initiatives on fee disclosure with the 

current Form 5500 requirements could make it easier for plan sponsors to 

comply. Specifically, sponsors and service providers stressed the 

importance of Labor coordinating the new Form 5500 requirements, which 

govern reporting at the end of a plan year, with the finalization of its 

proposed rule on “up-front” service provider disclosure to plan sponsors. 

Labor has requirements that govern the entering of a service agreement 

between a sponsor and service provider, referred to as the 408(b)(2) 

requirements, and has proposed changes to them that have not yet been 

finalized.27 Consequently, the new Schedule C requirements, or “after-thefact” disclosures,” were finalized before the 408(b)(2) regulation, which 

governs “up-front” disclosures. Since plan sponsors report on the Schedule 

C an after-the-fact summary of the fees and expenses paid by their plans 

during the plan year, the information provided on this form is directly 

related to information about fees and expenses that service providers will 

be required to disclose to plan sponsors by the 408(b)(2) requirements “up 

 

27On December 13, 2007, Labor published a proposed rule (72 Fed. Reg. 70987) to amend its 

current regulation under section 408(b)(2) of ERISA to clarify the information fiduciaries 

must receive and service providers must disclose for purposes of determining whether a 

contract or arrangement is “reasonable,” as required by ERISA’s statutory exemption for 

service arrangements. The regulation would require service providers to disclose, in 

writing, to plan fiduciaries of 401(k) plans, all services to be furnished; all direct and 

indirect compensation to be received; and any potential conflict of interest, such as certain 

third-party relationships, that could affect their objectivity under a service contract or 

arrangement. 

Page 15 GAO-10-54 Annual Reporting on Form 5500
 

front,” at the beginning of a service relationship. In our discussions with 

Labor officials, they noted that the better scenario would have been 

publishing the finalized 408(b)(2) regulation before the new Form 5500 

requirements and acknowledged the importance of coordinating the 

finalization of the proposed regulation with the Form 5500 requirements. 

The officials told us that the move to require electronic filing for the 2009 

plan year led them to finalize the Schedule C requirements first. However, 

it is unclear when the 408(b)(2) regulation will be finalized, which is 

important given that the first Form 5500s will be filed under the new 

requirements in July 2010. 

If the Schedule C requirements are not coordinated with the finalization of 

the proposed rule to change up-front disclosure, there could be competing 

sets of disclosure requirements for sponsors and service providers. Service 

providers had anticipated that the 408(b)(2) regulations would have 

already been finalized to coordinate with the changes to the Form 5500 to 

ensure they comply with both sets of rules at once. Without the 

coordination, service providers are in the position of potentially having to 

make expensive investments to update their data systems two separate 

times. In addition, coordinating the 408(b)(2) requirements with the Form 

5500 requirements could help ensure that plan sponsors are meeting their 

fiduciary responsibilities when selecting or renewing a contract with a 

service provider. 

Labor officials told us that they do not have specific plans for using the 

data received as a result of the new requirements, and we found that even 

with the changes, the Form 5500 may not be useful to Labor, sponsors, or 

others. Labor officials told us that they will wait to see how the newly 

required information is reported before determining its use. In addition, 

because plan sponsors will be required to list any service provider who 

fails to or refuses to provide the necessary information on the Schedule C, 

Labor could potentially pursue listed service providers for enforcement 

action. However, it is unclear whether Labor has any plans to devote 

additional resources to follow up on service providers. In fact, for the 2009 

plan year, plan sponsors will not be required to list service providers who 

fail to provide information if the service provider provides a statement that 

they made a good-faith effort to make any necessary recordkeeping and 

information system changes in a timely fashion. 

Labor Is Unclear 

about How It Will Use 

the New Information 

Reported on the Form 

5500, and the Form 

5500 May Continue to 

Not Provide Useful 

Fee Information to 

Labor and Others 

It is also unclear whether Labor has a plan to follow up with plan sponsors 

to ensure that they have received the newly required disclosures. Labor 

officials told us that the new requirements are meant to reinforce a 

Page 16 GAO-10-54 Annual Reporting on Form 5500
 

fiduciary’s obligation of monitoring service providers and plan fees and 

also are intended as an “exercise in discipline” for the sponsor, since the 

sponsor will have to create a financial record to submit it to Labor. 

According to these officials, this will ensure that sponsors receive the 

information they need about indirect compensation paid to service 

providers. 

Labor’s efforts are also meant to effect a behavioral change in plan 

sponsors and service providers. According to Labor officials, the intent is 

for plan sponsors to understand and then obtain the information they need 

to determine the reasonableness of the fees they are paying. Since service 

providers often prepare the Form 5500 on behalf of plan sponsors, the 

regulatory changes are also designed to notify service providers that 

compensation information should be provided to sponsors. Still, Labor and 

others are concerned that some service providers, who may not feel bound 

by Labor’s reporting requirements, may neglect to list the indirect 

compensation they may have received. 

Finally, the Form 5500 continues to have limited use for Labor, sponsors, 

and participants. 

Labor. Despite Labor’s efforts with the new Form 5500 requirements, 

information on asset-based fees is still not explicitly required to be 

reported on the form. As we have previously reported, the form does not 

explicitly list all of the fees paid from plan assets.28 For example, plan 

sponsors were not required to report mutual fund investment fees to 

Labor, even though they received this information for each of the mutual 

funds they offered in the 401(k) plan in the form of a prospectus.29 While 

prospectuses are provided to SEC, on a fund-by-fund basis, neither SEC 

nor Labor have readily available information to be able to link individual 

fund information to the various 401(k) plans to which the funds may be 

 

28GAO-07-21. 

29One 401(k) ratings and analytics firm believes that it is critical to separate out all the 

components of the expense ratio into the appropriate categories: for example, management 

fee, 12b-1, subtransfer agent, and shareholder servicing. The firm has devised a 

methodology to calculate a plan’s total costs that company officials believe will enable a 

plan sponsor to estimate these costs and determine the impact on participant retirement 

outcomes. According to company officials, the end result will be a fully broken out list of 

all the fees in a 401(k) plan that allows comparison across plans and across different fee 

structures (bundled and unbundled). 

Page 17 GAO-10-54 Annual Reporting on Form 5500
 

offered as investment options.30 Furthermore, prospectuses provide fees as 

expense ratios, which are used as an intermediate step in calculating net 

rates of return, and, as such, the dollar amount of deductions from plan 

assets are not explicitly stated. 

Labor officials told us that asset-based fees are now required to be 

reported on the Schedule C. However, even with the changes made to the 

reporting of indirect compensation, plan sponsors may wind up only 

reporting the presence of such fees on the Schedule C along with the 

identity of the service provider. Because these fees are already reported to 

SEC, the service provider must either (1) provide the plan sponsor with a 

document that discloses the documents already sent to SEC, with 

references to the pages or sections of the documents that contain the 

required information, or (2) determine whether the amount of the fund’s 

investment management fee that is allocable to the specific 401(k) plan is 

enough to be reportable, and then provide the dollar amount or a 

description of the formula used to calculate the amount of the 

compensation to the plan sponsor. The plan sponsor can then treat the 

asset-based fee or compensation as EIC and only report the identity of the 

service provider. Without information on all of the fees charged directly or 

indirectly to 401(k) plans, Labor is limited in its ability to identify fees that 

may be questionable. 

Labor officials told us that the changes to the Form 5500 were not meant 

to result in a comprehensive database of plan fees, because Labor did not 

want to put an undue burden on plan sponsors to comply with the new 

Form 5500 requirements. Labor asserts the expansion of the Schedule C is 

already significant. In addition, Labor officials told us that because the 

Schedule C is only filled out by larger plans with more than 100 

participants, the schedule is not a complete picture of the universe of plan 

fees. 

 

30Mutual fund prospectuses are filed with SEC and are available to the public from SEC’s 

Electronic Data Gathering, Analysis, and Retrieval System. The filings are not exclusive to 

those mutual funds offered as part of a 401(k) plan, but are an aggregate filing of fees 

associated with the funds, making it difficult for plan sponsors to determine their allocable 

share. Plan sponsors are not required to include prospectus fee disclosures with their Form 

5500 filings. Furthermore, it is not an agency practice for SEC to provide prospectus 

information to Labor, nor would such a practice benefit Labor, unless the information was 

then consolidated with the corresponding Form 5500 filings for plans that offered the 

mutual fund. 

Page 18 GAO-10-54 Annual Reporting on Form 5500
 

Sponsors. The Form 5500 may also not be the best vehicle for sponsors to 

assess service provider fee reasonableness or to understand business 

arrangements between service providers, since the form is filed long after 

the plan sponsor has already engaged the provider and selected the 

investment options. For the most part, the form is filled out for plan 

sponsors by service providers, who know the compensation arrangements 

and how to calculate the fees charged. According to industry experts, 

determining the dollar amounts to attach to ineligible indirect 

compensation is a source of confusion, because although some indirect 

compensation is straightforward, the calculation of other compensation is 

left to the best judgment of the service provider. Also, service providers 

may also choose to disclose only the formulas they use to determine 

ineligible indirect compensation, making it difficult for sponsors to assess 

fees or understand business arrangements. 

Participants. Participant groups told us that plan sponsors who use the 

Form 5500 to inform participants are likely to overwhelm participants with 

the volume and detail required as a result of Labor’s new regulations. Both 

Labor and industry experts told us that the Schedule C is not designed to 

be used by participants because it does not provide them with an easy 

comparison of available investment options. 

Labor has recently made some effort to improve the Form 5500, 

specifically the Schedule C. However, the changes made seem unlikely to 

resolve the issues surrounding service provider disclosure to plan 

sponsors. Absent detailed guidance aimed at clarifying the indirect 

compensation reporting requirements, Labor is at risk of receiving 

inconsistent and incomparable information on the Schedule C. In addition, 

the new requirements currently give plan sponsors the option of not 

disclosing EIC on the Schedule C. If Labor allows certain indirect 

compensation to be deemed EIC, and therefore not to be reported, Labor 

will continue to have incomplete information on compensation received 

by service providers, and will be no better informed. 

Conclusions 

Similarly, as long as asset-based fees netted from an investment fund’s 

performance are not required to be reported on the Form 5500, sponsors, 

participants, and Labor will not know the true costs of a plan. Requiring 

plan sponsors or administrators to report more complete information to 

Labor on fees—that is, those paid out of plan assets or by participants—

puts the agency in a better position to effectively oversee defined 

contribution plans. 

Page 19 GAO-10-54 Annual Reporting on Form 5500
 

Despite Labor’s intentions in changing the Form 5500 Schedule C, the way 

the regulations are currently written may not result in an increase in the 

amount of meaningful service provider compensation information 

reported to Labor. In addition, it is unclear whether plan sponsors will 

actually receive the information on service provider compensation that 

Labor believes is important for them to have. Because of the option to 

distinguish indirect compensation as either eligible or ineligible, service 

providers may choose to qualify their compensation as EIC and not 

provide their disclosures to plan sponsors. 

Meanwhile, Labor has also proposed regulatory changes that could 

eliminate some of the confusion surrounding 408(b)(2) disclosure 

requirements. However, it is unclear whether the final regulations will be 

coordinated with the existing changes to the Form 5500 reporting 

requirements. Coordinating these initiatives may reduce the burden and 

the cost to service providers and clarify for plan sponsors the information 

they need for the service provider selection and renewal processes. 

Finally, as we suggested in our November 2006 report, absent a statutory 

change with explicit requirements for service providers, Labor will 

continue to lack comprehensive information on all fees being charged 

directly or indirectly to 401(k) plans. 

To minimize the possibility that inconsistent and incomparable 

information will be reported on the Schedule C and to ensure that the data 

collected results in meaningful information for Labor, sponsors, and 

participants, we recommend that the Secretary of Labor take the following 

action: 

Recommendations for 

Executive Action 

• Provide additional guidance regarding the reporting of indirect 

compensation and require that all indirect compensation be disclosed on 

the Schedule C. 

Furthermore, consistent with our previous recommendation, to ensure 

comparable disclosure among all types of service providers and ensure 

that all investment products’ fees are fairly disclosed, we recommend that 

the Secretary of Labor take the following action: 

• Require asset-based fees that are netted from an investment fund’s 

performance (and, as such, are not paid with plan assets) be explicitly 

reported on the Form 5500. 

Page 20 GAO-10-54 Annual Reporting on Form 5500
 

To reduce the potential for additional costs and burden being placed on 

service providers, we recommend that the Secretary of Labor take the 

following action: 

• Coordinate the implementation of the Form 5500 revisions with the 

publication of its final 408(b)(2) regulations, since the two initiatives are 

closely related. 

We provided a draft of this report to the Department of Labor (Labor). We 

received written comments from the Assistant Secretary for Employee 

Benefits Security Administration, which we reproduced in appendix I. 

Labor generally agreed with our recommendations. Labor also provided 

technical comments, which we have incorporated in this report where 

appropriate. 

Agency Comments 

and Our Evaluation 

Labor stated that it is committed to making the shift to the expanded 

Schedule C reporting requirements as smooth as possible, and that it has 

already engaged in substantial outreach on the new reporting 

requirements. Specifically, regarding our recommendation that Labor 

provide additional guidance on the reporting of indirect compensation, 

Labor stated that it has plans to continue its outreach efforts, including 

publishing additional Schedule C guidance. Regarding our 

recommendation that all indirect compensation be disclosed on the 

Schedule C and that asset-based fees be explicitly reported on the Form 

5500, Labor explained that it had originally proposed that all indirect 

compensation charged against a plan’s investments be required to be 

reported on the Schedule C, without providing an alternative reporting 

option. However, Labor provided an alternative reporting option for 

eligible indirect compensation to plan fiduciaries on the basis of 

comments received on the proposed rule. Labor stated that the alternative 

reporting option would provide the department with enough information 

to engage in effective oversight activities. Labor also stated that once 

Schedule C reporting begins (for most plans, July 2010 and later), it will be 

able to evaluate the data it receives, taking into consideration our 

recommendation. Although Labor stated in its comments that its eligible 

indirect compensation reporting requirements are intended to help ensure 

fiduciaries are collecting information and evaluating service provider 

indirect compensation, we believe that it is also important for the indirect 

compensation information to be reported to Labor. As we stated in our 

report, we continue to believe that Labor will not receive enough 

information to engage in effective oversight activities. Finally, Labor stated 

that it agreed with our recommendation to coordinate the implementation 

Page 21 GAO-10-54 Annual Reporting on Form 5500
 

of the Form 5500 regulations with the publication of its final 408(b)(2) 

regulation, and that it will continue to coordinate the two initiatives. 

As agreed with your office, unless you publicly announce its contents 

earlier, we plan no further distribution until 30 days after the date of this 

report. At that time, we will send copies of this report to the appropriate 

congressional committees, the Secretary of Labor, and other interested 

parties. In addition, the report will be available at no charge on GAO’s Web 

site at http://www.gao.gov. 

If you or your staff has any questions concerning this report, please 

contact me at (202) 512-7215 or bovbjergb@gao.gov. Contact points for our 

Offices of Congressional Relations and Public Affairs may be found on the 

last page of this report. GAO staff who made key contributions to this 

report are listed in appendix II. 

Sincerely yours, 

erg 

Director, Education, Workforce, and 

ues 

Barbara D. Bovbj

 Income Security Iss

Page 22 GAO-10-54 Annual Reporting on Form 5500
Appendix I: Comments from the Department 

of Labor 

Page 23 GAO-10-54 

Appendix I: Comments from the Department 

of Labor 

 Annual Reporting on Form 5500 
Appendix I: Comments from the Department 

of Labor 

Page 24 GAO-10-54 Annual Reporting on Form 5500
Appendix I: Comments from the Department 

of Labor 

Page 25 GAO-10-54 Annual Reporting on Form 5500
Appendix II: 

A

GAO Contact and Staff 

cknowledgments 

Page 26 GAO-10-54 

Appendix II: GAO Contact and Staff 

Acknowledgments 

Barbara Bovbjerg, (202) 512-7215 or bovbjergb@gao.gov 

The following team members made key contributions to this report: 

Tamara Cross, Assistant Director; Monika Gomez, Analyst-in-Charge; 

Christopher Langford; James Bennett; Jessica Orr; Walter Vance; and 

Roger Thomas. 

GAO Contact 

Staff 

Acknowledgments 

 Annual Reporting on Form 5500 
Related GAO Products Related GAO Products 

Private Pensions: Conflicts of Interest Can Affect Defined Benefit and 

Defined Contribution Plans. GAO-09-503T. Washington, D.C.: March 24, 

2009. 

Private Pensions: Fulfilling Fiduciary Obligations Can Present 

Challenges for 401(k) Plan Sponsors. GAO-08-774. Washington, D.C.: 

July 16, 2008. 

Private Pensions: GAO Survey of 401(k) Plan Sponsor Practices 

(GAO-08-870SP, July 2008), an E-supplement to GAO-08-774.

GAO-08-870SP. Washington, D.C.: July 16, 2008. 

Private Pensions: Information That Sponsors and Participants Need to 

Understand 401(k) Plan Fees. GAO-08-222T. Washington, D.C.: 

October 30, 2007. 

Private Pensions: 401(k) Plan Participants and Sponsors Need Better 

Information on Fees. GAO-08-95T. Washington, D.C.: October 24, 2007. 

Defined Benefit Pensions: Conflicts of Interest Involving High Risk or 

Terminated Plans Pose Enforcement Challenges. GAO-07-703. 

Washington, D.C.: June 28, 2007. 

Private Pensions: Increased Reliance on 401(k) Plans Calls for Better 

Information on Fees. GAO-07-530T. Washington, D.C.: March 6, 2007. 

Private Pensions: Changes Needed to Provide 401(k) Plan Participants 

and the Department of Labor Better Information on Fees. GAO-07-21. 

Washington, D.C.: November 16, 2006. 

Private Pensions: Government Actions Could Improve the Timeliness 

and Content of Form 5500 Pension Information. GAO-05-491. 

Washington, D.C.: June 3, 2005. 

(130899) Page 27 GAO-10-54 Annual Reporting on Form 5500
GAO’s Mission The Government Accountability Office, the audit, evaluation, and 

investigative arm of Congress, exists to support Congress in meeting its 

constitutional responsibilities and to help improve the performance and 

accountability of the federal government for the American people. GAO 

examines the use of public funds; evaluates federal programs and policies; 

and provides analyses, recommendations, and other assistance to help 

Congress make informed oversight, policy, and funding decisions. GAO’s 

commitment to good government is reflected in its core values of 

accountability, integrity, and reliability. 

The fastest and easiest way to obtain copies of GAO documents at no cost 

is through GAO’s Web site (www.gao.gov). Each weekday afternoon, GAO 

posts on its Web site newly released reports, testimony, and 

correspondence. To have GAO e-mail you a list of newly posted products, 

go to www.gao.gov and select “E-mail Updates.” 

Obtaining Copies of 

GAO Reports and 

Testimony 

Order by Phone The price of each GAO publication reflects GAO’s actual cost of 

production and distribution and depends on the number of pages in the 

publication and whether the publication is printed in color or black and 

white. Pricing and ordering information is posted on GAO’s Web site, 

http://www.gao.gov/ordering.htm. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or 

TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card, 

MasterCard, Visa, check, or money order. Call for additional information. 

Contact: 

Web site: www.gao.gov/fraudnet/fraudnet.htm

E-mail: fraudnet@gao.gov

Automated answering system: (800) 424-5454 or (202) 512-7470 

Ralph Dawn, Managing Director, dawnr@gao.gov, (202) 512-4400 

U.S. Government Accountability Office, 441 G Street NW, Room 7125 

Washington, DC 20548 

To Report Fraud, 

Waste, and Abuse in 

Federal Programs 

Congressional 

Relations 

Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800 

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, DC 20548 

Public Affairs 

Please Print on Recycled Paper