New Fee Disclosure Regulations
Defined contribution retirement plans (such as 401(k) Plans) are a key element of retirement savings for most Americans today. Participants are generally responsible for making their own investment decisions. In order to ensure that Participants have enough information to make those decisions, the US Department of Labor (DOL) issued new regulations requiring that Plan Sponsors provide their Participants with information on Plan expenses, investment expenses, and investment performance on a recurring basis.
Much of the required information described below is already provided to Participants in the typical “enrollment kit.” The most significant change in the new regulations relates to the frequency of “automatic” disclosures; contrast these automatic disclosures with the present system where Participants generally have to seek out investment information from an investment provider’s web-site.
The new regulations categorize the disclosures into different categories. Depending on the category, the disclosure will be required to be distributed either annually or incorporated into the quarterly (or monthly) investment statements. A summary of the new disclosures can be found on our website.
More information on exactly how these new disclosure rules will be satisfied will be addressed in future communications as more information (particularly from investment providers) becomes available. Please call PASI if you have any questions at all: 860.284.6880.
Payroll Services from PASI
Our PASI Payroll service offers state-of-the-art payroll technology. You receive complete, accurate and affordable payroll services that also allow you to realize full integration and custom reports. Eliminate the need for compiling year-end Census data! Call PASI today and learn how our integrated Payroll Services will save you time and money. Our costs are typically below most of the competition. See more details about our payroll services here.
How to Choose your Administrators
Here are some highlights of a recent article, The Value of a Good TPA, written by ERISA attorney Ary Rosenbaum, Esq.
- The TPA is the glue that holds the retirement plan together. The TPA handles the day to day administration of the plan, including distributions, discrimination testing, asset reconciliation, and governmental filings.
- The good TPA offers an invaluable service because their work preserves the tax qualification of retirement plans, thereby preserving the plan sponsor’s tax deductions for plan contributions, and the tax deferred status of the participants’ retirement savings.
- The TPA insures proper plan compliance and helps to minimize the plan sponsor’s liability since they have been delegated with the job of handling the plan sponsor’s function as plan administrator.
- The good TPA will not only be the third party administrator, but also a consultant and a major back office support that will help the plan sponsor navigate the calamitous waters of plan sponsorship and limit their liability.
- A good TPA can be part of your inner circle of advisors.
- When looking for a TPA, concentrate on their level of service and their expertise, instead of solely on the amount of their fee. Sometimes you get what you pay for; sometimes it costs more down the line by going with the low cost provider.
PASI is pleased to welcome the following organizations to our family of clients:
West Hartford Housing Authority
Upcoming Fee Disclosure Deadlines
JULY 1: Plan Service Providers must supply employers with detailed information in writing about services provided and fees associated according to 408(b)(2)
AUGUST 30: Plan Sponsors to release first annual statement to employees on fee disclosures according to 404(a)(5)
NOVEMBER 14: First quarterly participant statement due detailing fees and expenses according to 404(a)(5)
Congratulations to the following employees for successfully completing four exams and obtaining their ASPPA designation as a Qualified 401(k) Administrator (QKA).
- Diane Guarino
- Effie Moutogiannis
- Sherri Drouin
Welcome to our newest pension consultant, Josephine Ackerson, joining us from her previous position with The Hartford.