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1 ADVANCED PROSPECTING WITH THE FORM 5500 Brought to you by:

2 What is FreeERISA.com

3 Signing Up

4 The Form 5500 The 5500 is the annual DOL disclosure Form required for all ERISA qualified benefit plans Filed by Private Employer Groups Unions and for profit Associations Filed for 401(k) Plans Health Life Dental And many more

5 Two Distinct Sets of Filers Health employees in the plan About 85,000 filings per year All companies file the same basic form Retirement 2 + employees in the plan About 700,000 filings per year Smaller companies can file the Short Form

6 What kind of information is in the All Plans Aggregate data on plan participants Active, retired and separated Name of plan administrator Plan Types Health/Welfare Plans Carriers, Brokers and Providers Insurance contract information Funding Arrangement 401(k)/Retirement Plans Total Plan Assets Asset/Liability statement Detailed financial disclosures 5500?

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11 Disclosure Timeline New Health/Welfare DOL Filings by Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Filings disclosed during 2013 Source: US Department of Labor

12 Know What You re Looking At

13 The Anatomy of a 5500 The 5500 consists of the main form, a series of schedules and a set of attachments. Here s a quick rundown of what you ll find on the various sections Portion Data Type Specific Items of Interest Main General Renewal date, size of plan, contact data, plan types Schedule A Insurance Names of Carriers and Brokers Schedule B Actuarial Schedule C Providers Name, compensation, and service provided Schedule H Financials Assets, Liabilities

14 The Main Form On this portion of the form, you ll find the following information: Plan Participant Info Employer Address Name of person signing as plan administrator Renewal Date of the plan Plan type codes (is it health, life, dental etc ) Plan funding arrangement

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16 Timely Qualifier Renewal Date You re more likely to get the meeting if you call 3 months prior to their plan year end than if you call 10 months early. The plan s renewal date can be found at the top of the first page of the 5500.

17 Welfare Codes to Know: 4A = Health 4B = Life 4D = Dental 4E = Vision Retirement Codes to Know: 1? = A Defined Benefit Plan 2? = A Defined Contribution Plan 2J = 401(k) Plan

18 Identifying Self Funded Plans Fully Insured Fully Self Funded Partially Insured/ Partially Self Funded

19 Schedule A The Schedule A is filed when a plan is funded at least in part through an insurance contract. It contains information on: A single insurance Carrier Any Brokers who were paid commissions or fees by the carrier The amount of commissions/fees paid The premium collected by the carrier The lines of coverage in the specific insurance policy # of employee lives covered by policy

20 Schedule A Schedule A

21 TIP Providers who are not local to the plan may not be able to provide the same level of personalized service that you can.

22 Schedule A

23 Math! Premiums: $23,028 Broker A Commission: $1,849 Broker B Commission: $181 $1,849+$181 = $2,030 Broker A $1,849 = 91% $2,030 Share of Premium is $20,955 Broker B $181 = 9% $2,030 Share of Premium is $2,072

24 Schedule A Self Funding Revisited What do you mean by self funded? Partially Insured/ Partially Self Funded Codes from the Main 5500

25 Schedule A Self Funding Revisited Benefit Boxes from Schedule A Codes from the Main 5500 The Codes are Different! Welfare Codes to Know: 4A = Health 4B = Life 4D = Dental 4E = Vision

26 Schedule A Benefit Boxes from Schedule A Most Common Other Types Accidental Death and Dismemberment Employee Assistance Program Business Travel Accident Long Term Care Voluntary Short Term Disability

27 Schedules SB and MB Schedule B is filed for all Defined Benefit plans and contains actuarial information. Schedule SB is filed for single-employer DB plans and MB is filed for multi-employer DB plans. On Schedule B, you can find: The name of the actuary Assets Funding targets and status Minimum required contributions Statement of actuarial assumptions

28 Schedules SB and MB

29 Schedule C Schedule C is filed when a third party provider is paid $5,000 or more out of plan assets, or more than $1,000 in indirect compensation. You can use Schedule C to determine: Total direct compensation of a provider Indirect compensation paid to a provider from mutual funds Names of providers who failed to provide appropriate disclosure 64 unique service codes that explain the nature of the service provided to the plan, including: Accounting Auditing Administration Trustee Insurance Brokerage Consulting

30 Schedule C Health Focus

31 Schedule C Health Focus What does it mean when a big company like Cigna is filed on Schedule A vs. Schedule C. Schedule A Insurance Contracts Transference of risk Premiums collected Schedule C Administrative Services Only (ASO) No assumptions of Risk Fee for service

32 Schedule C Retirement Focus

33 Schedule D Schedule D is filed for a plan or Direct Filing Entity (DFE) that invested in or participated in any Master Trust Investment Account (MTIAs), Common Collective Trusts (CCTs) and/or Pooled Separate Accounts. Items you ll find on the Schedule D include: Name of Mutual fund or other investment vehicle Name of the sponsoring organization/dfe Dollar value of interest in the investment vehicle

34 Schedule D

35 Schedules H and I Schedules H and I are financial disclosure schedules. Plans will file a Schedule H or a Schedule I depending on their size. Large plans (100+ participants) generally file a Schedule H. Smaller plans will generally file a Schedule I. Plans will file either one or the other, not both. Schedule H contains more information than Schedule I, but both schedules will give you: Total Assets Income and Expense Statement Employee and Employer Contributions Admin Expenses Compliance questions Participant loans

36 Schedules H and I

37 Compliance Questions

38 QUALIFYING PROSPECTS WITH THE 5500

39 Find Your Sweet Spot What do your current clients look like? Answering this question is the key to qualifying prospects using the There are over 800,000 filings. You can identify the ones that are your best targets using: Plan Type Geography Current Provider # of Lives Industry Funding type

40 Where to Find Key Qualifiers Short Form (many small plans) 5500 w/ Sch. I (plans with < 100) Total Assets Part III, item 7 Schedule I, Part I item 1 Participants Part II, item 5(a) Main Form, Part II items 5 and 6 Plan Type Part IV, item 9(a) Main Form, Part II item 8a Providers N/A Schedule A Insurance Schedule C All Others 5500 w/ Sch. H (plans with > 100) Schedule H, Part I item L Main Form, Part II items 5 and 6 Main Form, Part II item 8a Schedule A Insurance Schedule C All Others Location Part II, item 2(a) Main Form, Part II 2(a) Main Form, Part II 2(a) Industry Type Part II, item 2(d) Main Form, Part II 2(d) Main Form, Part II 2(d)

41 WHERE TO FIND 5500s

42 Free 5500 Access Search by company name Premium 5500 Access Search by: Plan Type Number of Participants Brokers Rate of Return Participation Rate Asset Amount 5500 Resources

43 Thank you ~Eric Ryles Managing Director FreeERISA.com Judy Diamond Associates