Form 5500 Filings Provide Data on the Social Component of ESG

Over 80% of Russell 3000 companies file Form 5500s indicating welfare plans that cover health, dental, vision, and long-term disability benefits. Less than 80% of Russell 3000 companies file Form 5500's for temporary disability, death benefits, severance, prepaid legal, and supplemental unemployment benefit plans.

Understanding how a company treats its employees is a key factor in the “Social” component of ESG. Form 5500 filings outline what benefits each company offers to its employees and allows you to determine which companies are most generous, and which companies are less generous.

percentage russell3k offering temporary disability benefits

Axiomatic Data’s Form 5500 database allows you to see changes in benefits over time and identify which companies in each industry are at the top of the employee benefit charts.

The Form 5500 Series is part of the Employee Retirement Income Security Act (ERISA) reporting and disclosure framework inte​nded to ensure that employee benefits plans are operated and managed in accordance with prescribed standards. Further, it ensures that participants and beneficiaries, as well as regulators, have access to sufficient information to protect the rights and benefits of participants and beneficiaries under the covered employee benefits plans. All qualified retirement plans, 403(b) plans subject to ERISA, and health and welfare plans covering more than 100 participants are subject to filing the Form 5500, and filing must be done electronically by an officer of the company offering the plan.