Multiemployer plans, typically governed by 501(c)(5) or 501(c)(9) organizations, play a pivotal role in providing health & welfare, vacation, training, pensions, and scholarship benefits. Trustees must stay ahead in 2025, as the IRS intensifies Form 990 and Form 5500 scrutiny, while rolling out major new reporting requirements and regulations.
Mandatory e‑Filing & 990/5500 Deadlines
- Form 990 and 990-EZ must be filed electronically for tax years ending after July 31, 2020. This includes organizations that sponsor VEBA trusts (501(c)(9)) [6].
- Form 5500 series (including Schedules A, C, MB, SB) must also be filed electronically via EFAST2 [2].
Deadline Highlights:
- Form 5500: July 31, 2025 (calendar-year plans) with extension via Form 5558
- Form 990: Typically, May 15 or 15th day of the 5th month after fiscal year-end [7].
Trustees should confirm due dates and monitor IRS updates via Publication 557 and Publication 5411 [6][7].
Elevated Penalties & Audit Risk
- Non-filing or omissions on Form 5500 can result in $250/day penalties, capped at $150,000 [1].
- The IRS auditors targeted over 1,300 retirement and welfare plans in 2024, with common findings including missing Schedules A, incorrect plan type classifications, and participant count errors [1].
New Requirement: IRS Form 15315 for Pension Plans
- Starting in 2025, multiemployer defined benefit (DB) pension plans must file Form 15315, certifying actuarial funding status under IRC 432(b)(3) [3][4].
- The IRS offers an e-file option, though paper, fax, and email are still accepted [4].
Updated Present Value Rules (T.D. 9990)
- Treasury’s T.D. 9990 (April 2024) updates mortality tables and interest rates used to determine minimum lump-sum values [5]. These changes require immediate updates in actuarial valuations and participant communications.
Ongoing Focus on VEBAs (501(c)(9))
- The IRS continues to clarify VEBA exemptions (life, sick, accident benefits) under Section 419 and 501(c)(9) [8].
- To remain tax-exempt, VEBA assets must be used exclusively for plan participants, and benefits must follow approved funding limits.
- The IRS has included welfare plan funding guidance in its 2024–2025 Priority Guidance Plan, indicating more oversight is coming [9].
Case Study:
Background: A 501(c)(5) trust provides vacation, training, and a defined benefit pension plan to 2,500 union workers and their families.
2025 Compliance Journey:
- Upgraded to electronic filing for Form 990/EZ and 5500—no delays [2].
| Zone Status | Funding Level | Trustee Action Required |
| Green (Healthy) | >= 80% | No special action required |
| Yellow (Endangered) | 65%- 79% | Must adopt a Funding Improvement Plan |
| Red (Critical) | < 65% | Must adopt a Rehabilitation Plan |
| Red (Critical & Declining) | < 65% + projected insolvency | Rehabilitation Plan + Notify PBGC, Participants and employers |
- Filed Form 15315 via IRS e-file for their DB pension—zone status: Yellow, with a funding improvement plan [3].
- Actuary recalibrated lump-sum values using new mortality tables under T.D. 9990 [5].
- Plan communications updated: SPDs, funding notices, and benefit explanations were mailed to all members.
Result: The trust avoided penalties, passed audit without issues, and strengthened member confidence in governance and funding transparency.
Trustee Action Plan – Summer 2025
| Area | Action Item |
| 990 | Confirm e-filing setup; review VEBA disclosures [6][8] |
| 5500 | Ensure all schedules attached; request extension via Form 5558 [1][2] |
| Form 15315 | Collect actuary data; file via e-file or accepted mediums [3][4] |
| Valuation Updates | Update plan calculations to align with T.D.9990 [5] |
| VEBA Trust Rules | Monitor IRS guidance on reserve policy [9] |
| Governance | Strengthen documentation, SPD reviews, and participant notices |
IRS & Government References
[1] IRS – Penalties for Late or Missing Form 5500
https://www.irs.gov/retirement-plans/form-5500-corner
[2] EFAST2 System for Filing Form 5500
https://www.efast.dol.gov/portal/app/disseminate?execution=e1s1
[3] IRS – About Form 15315 (Multiemployer Pension Certification)
https://www.irs.gov/forms-pubs/about-form-15315
[4] IRS – Instructions for Form 15315
https://www.irs.gov/pub/irs-dft/i15315–dft.pdf
[5] Federal Register – T.D. 9990 Final Regulations (Present Value Rules)
[6] IRS – Publication 557 (Tax-Exempt Status)
https://www.irs.gov/publications/p557
[7] IRS – Publication 5411 (Retirement Plan Reporting Calendar)
https://www.irs.gov/pub/irs-pdf/p5411.pdf
[8] IRS – 501(c)(9) VEBA Trust Overview
[9] IRS – 2024–2025 Priority Guidance Plan
https://www.irs.gov/pub/irs-utl/2024-2025_pgp.pdf
[10] PBGC – Special Financial Assistance for Multiemployer Plans
