Welcome to an ERISA sunscreen moment and I'm Day Day. See what with them Smith and Browns employee benefit plans services group this week? Sunscreen moment might be considered to be a little geeky and is really meant for the most hardcore financial statement users in a plan. How should a fully benefit responsive GIC (Guaranteed Investment Contract) be reported in the supplemental schedule of the plan's financial statements? The answer is, it depends. Form 5500 requires the plans to report their investments in Schedule H at current value. Under ERISA, current value is defined as fair market value when available. Otherwise, current value is determined pursuant to the investments terms, assuming an orderly liquidation of the investment. Therefore, standalone GICs are reported at contract value in Schedule H. However, a fund like a stable value fund has a market value, so these funds are reported at fair value in Schedule H. The next time you're at a party, try sharing this as part of the conversation. Everyone's either going to be incredibly impressed, making you the life of the party, or they might look at you like you have two heads. Either way, you're going to get noticed. This has been an ERISA sunscreen moment. Use it, don't get burned.
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Video instructions and help with filling out and completing Where Form 990 Schedule H Part V Section B
