Super Fiduciary Solutions for Your Retirement Plan Needs

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Presentation Description

Whenever a company offers a plan where the employer matches employee deferrals, the plan document will include information about the “calculation” and “funding” periods for the matching contributions. When matching contributions are funded each payroll period, but are required to be re-calculated annually, a “true-up” calculation is needed.

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Presentation Transcript

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SUPER Fiduciary Solutions for ALL Your Retirement Plan Needs SUPER Fiduciary Solutions for ALL Your Retirement Plan Needs

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Getting to the Truth of a True Up Rhonda Wright Director Client Transition The Situation Whenever a company offers a plan where the employer matches employee deferrals the plan document will include information about the “calculation” and “funding” periods for the matching contributions. When matching contributions are funded each payroll period but are required to be re-calculated annually a “true-up” calculation is needed. But sometimes true-up calculations can be wrong. Who then is responsible The answer may not be as simple as you think. In one such circumstance a large company was audited by the Internal Revenue Service IRS who determined that the matching true-up was calculated incorrectly. The employer went to their then-plan service provider—which was not acting in a fduciary capacity—whose response essentially was that the employer must have supplied them with the wrong numbers. The provider was correct in saying it wasn’t on them—remember they were not a fduciary. If the service agreement didn’t mention verifying calculations such as true-ups then yes they were probably off the hook. The Value of a 316 Fiduciary Service providers write agreements that protect them and not the plan sponsor. If they don’t say they will do it then they’re not responsible for doing it. A 316 fduciary administrator not only does the work but is responsible for ensuring it is done right. As the 316 fduciary Pentegra takes as much of the audit work off the client’s plate as possible. In fact we prefer to work with the auditors directly to make the process that much easier. We do the work and take responsibility for doing it right.

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Save me time. Take work off my desk. Eliminate complex responsibilities. Minimize risk and burdens. Make it easy for me. T oday you’re busy running your business. Who has the time to devote to the retirement plan responsibilities that come with the day-to-day job of a plan administrator But at the end of the day employers are fduciaries. They are legally responsible for their plans. Most mistakes involve plan administration. As our stories illustrate there are very real and signifcant consequences. That’s why it is so important to hire an ERISA 316 Fiduciary Administrator. The right 316 Administrator can virtually eliminate the risk of failing to meet deadlines or doing things incorrectly and assume these responsibilities for your clients. Enter Pentegra As one of the most experienced 316 Administrators in the industry Pentegra can help. Pentegra is America’s oldest independent fduciary. With more than 75 years of expertise serving as an institutional fduciary Pentegra really can make it easy. This booklet of short stories is brought to you by the fduciary super heroes at Pentegra. Each day we’re helping our clients make retirement plan administration problems disappear with 316 fduciary outsourcing solutions designed to simplify plan administration minimize risk and burdens. It’s not quite magic but it is that simple. Y ou really can transfer the responsibilities and burdens of managing a retirement plan and save time work and cost all while eliminating compliance risks and complex burdens. Think of us as your fduciary super hero.

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As America’s oldest independent fduciary Pentegra is your fduciary expert. Learn more about our 316 fduciary solutions. Contact the Pentegra Solutions Center at solutionspentegra.com or 855-549-6689 Follow our conversation.

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