THE ALLIANCE BENEFIT GROUP–PENTEGRA
Alliance Benefit Group–Pentegra
Alliance Benefit Groupâ€“Pentegra
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Alliance Benefit Group–Pentegra
ADVISOR 401(K) PLAN FACT FINDER 1. 2. 3 4. 5. 6. 7. 10. 11. 12. 13. 14.
Name of Employer _______________________________________ Phone:_________________ Address _________________________________________________ Email:___________________ Web address: ___________________________________________________ Current Retirement Plan Provider(s) _________________________________ a) Total Employees ____________ b) Number of Eligible Employees ____________ c) Number of Participants ____________ Current Plan Assets _________________________ How long has the company used their current 401(k) recordkeeper/administrator? ____Less than 2 years ____2 < 5 years ____5 <10 years ____>10 years How often does the company evaluate other 401(k) providers? ____Less than 2 years ____2 < 5 years ____5 <10 years ____>10 years What is the plan’s eligibility? ____Immediate ____0-3 months ____4-6 months ____1 year Is the plan sponsor familiar with the Pension Protection Act? ____Yes ____No ____Unsure Does the plan utilize automatic enrollment/negative election? ____Yes, satisfies safe harbor conditions defined by PPA ____Yes, does not satisfy the safe harbor conditions defined by PPA ____Yes, unsure of safe harbor conditions ____No, never had it ____No, discontinued it ____No, but considering it ____No, unaware of this feature Does the plan offer an automatic deferral increase feature? ____Yes, as a separate stand alone feature ____Yes, tied to an automatic enrollment feature ____Yes, tied to an easy enrollment feature ____Yes, tied to both an easy enrollment feature and auto-enrollment ____No, but considering it ____No, unaware of this feature ____No ____Other If yes, what is the deferral percentage? ____1% ____2% ____Employee’s choice ____Other What is the plan’s vesting schedule? ____Immediate ____2 year cliff ____3 year cliff ____3 year graduated ____4 year graduated ____5 year graduated ____6 year graduated ____other Does the plan have a profit sharing provision? ____Yes ____No If yes, is the contribution structured as a ____Fixed ____Discretionary, this contribution was made this year ____Discretionary, this contribution was NOT made this year ____ Combination If yes, what is the allocation method? ____Pro-rata (pay to pay) ____Integrated w/Social Security ____Age weighted ____Service weighted ____other______________________________________________
Does the plan offer a matching contribution? ____Yes ____No If yes, what form of matching formula does the plan utilize? ____Fixed Match Only (excluding Safe Harbor) ____Fixed Match & Discretionary Profit Sharing Match ____Fixed Match & Discretionary Profit Sharing Contribution ____Fixed Match & Other Contributions
16. 17. 18. 19. 20. 21. 22. 23. 24.
____Discretionary Profit Sharing Match & Other Contributions ____Discretionary Profit Sharing Contribution & Other Contributions ____Profit Sharing Contribution Only ____Safe Harbor Match Only ____Safe Harbor Match and Other Contributions ____Safe Harbor Elective Contribution and Other Contributions ____No Company Contributions____Other What is the match? _______________________________ Does the plan offer loans? ____Yes ____No If no, is the company considering adding a loan provision? ____Yes ____No What is the plans participation percentage? ______% What is the average deferral rate for “non-highly compensated” employees? ______% “highly compensated”? ______% Does the plan allow catch-up contributions ____Yes ____No? Does the plan allow for Roth contributions ____Yes ____No? Does the employer offer a non-qualified deferred compensation plan ____Yes ____No? ____Head of operations or administration ____CFO or VP finance ____Other What is the plan sponsor’s understanding of their fiduciary responsibility? ____Full ____Somewhat ____None Who answers questions on fiduciary issues regarding the plan? ____Outside ERISA attorney, CPA, or actuary ____Retirement provider or recordkeeper ____In-house counsel ____CEO or president ____Retirement plan advisor ____Plan committee or pension board ____Head of benefits or HR ____Head of operations or administration ____CFO or VP finance ____Other What are the challenges in fulfilling fiduciary responsibilities? ERISA 404(c) compliance ____Not a priority ____Somewhat a priority ____Top priority Understanding fees/expenses ____Not a priority ____Somewhat a priority ____Top priority Fiduciary training ____Not a priority ____Somewhat a priority ____Top priority Documentation of procedures ____Not a priority ____Somewhat a priority ____Top priority Investment policy review ____Not a priority ____Somewhat a priority ____Top priority Plan provider benchmarking ____Not a priority ____Somewhat a priority ____Top priority Plan document review ____Not a priority ____Somewhat a priority ____Top priority Fiduciary investment review ____Not a priority ____Somewhat a priority ____Top priority Participant education ____Not a priority ____Somewhat a priority ____Top priority
ADVISOR 401(K) PLAN FACT FINDER 25. What resources are used for legislative and regulatory updates? Retirement plan advisor ____Not a resource ____Somewhat valuable ____Most Valuable Retirement plan provider ____Not a resource ____Somewhat valuable ____Most Valuable Online websites ____Not a resource ____Somewhat valuable ____Most Valuable Trade publications ____Not a resource ____Somewhat valuable ____Most Valuable Attorney (in-house) ____Not a resource ____Somewhat valuable ____Most Valuable Attorney (outside counsel) ____Not a resource ____Somewhat valuable ____Most Valuable Accountant ____Not a resource ____Somewhat valuable ____Most Valuable Other __________________________ ____Not a resource ____Somewhat valuable ____Most Valuable 26. Does the plan sponsor have formal retirement committee? _____ Yes _____No If so, how often do they meet? ____Monthly ____Quarterly ____Annually 27. List the funds and corresponding ticker symbols (if mutual funds) currently available to plan participants. Fund Ticker Symbol ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ ______________________________________________________________ __________________ 28. What is the planâ€™s default investment option? _____________________________________ 29. Does the plan sponsor have a written Investment Policy Statement which would determine how and why certain funds were/are selected? ____Yes ____No ____Uncertain 30. How often are plan investments monitored? ____Annually ____Semi-Annually _____Quarterly ____Monthly ____Other 31. Does the plan offer company stock? ____Yes ___No 32. Does the plan offer a Self Directed Brokerage Option? ____Yes ____No 33. What is the number of investment options offered in the plan? ________
Does the plan offer investment advice to participants? ____Yes ____No If yes, through which source is advice provided? ____Financial planner/advisor ____Third Party ____Company’s DC Provider _____Other Source
What is the primary purpose for providing (or the interest in providing) plan education? ____Increase Appreciation for the Plan ____Increase Participation ____Increase deferrals ____Improve Asset Allocation ____Introduce Plan Changes ____To Reduce Fiduciary Liability ____Make the transition of a Merger/Acquisition ____Other
What means are used in the 401(k) plan education process? ____Enrollment Kits ____Paycheck Stuffers ____Fund Performance Sheets ____CD’s/MP3’s/Audio ____Videos/DVD’s ____Slides/PowerPoint ____Retirement Gap Calculators ____Other Modeling Software (not retirement gap) ____401(k) Day ____Newsletters ____Posters ____ Books ____Seminars/Workshops ____Webinars ____Email ____Internet/Intranet ____Individually Targeted Communication
Billable expense per year or quarter? $____________ per year OR $__________ per quarter
Is there an “asset charge” or “wrap charge” within the current contract? ____Yes ____No If yes, what is the charge? _________________ Is it a graded asset charge? ____Yes ____No
How often can employees/participants initiate investment transfers? ____Daily ____Monthly ____Annually ____Other
40. How often is the plan valued? ____Daily ____Monthly ____Quarterly ____Annually 41. Other retirement plans (list all that apply) ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________
INDUSTRY SURVEYS & BENCHMARKING DATA
PSCA 2010 53rd Annual Survey for Profit Sharing and 401(k) Plans
PSCA 2010 403(b) Plan Survey
2010 401(k) Averages Book
IOMAS Annual Defined Contribution Plan Report
Benchmarks for 401(k) Plans
Alliance Benefit Groupâ€“Pentegra
TECHNICAL RESOURCES YOUR RETIREMENT MATTERS We also offers a robust library of participant newsletters. Easy to read articles cover topics such as asset allocation, diversification, and balancing risk/return.
INDUSTRY RESOURCES & INFORMATION American Society of Pension Professionals & Actuaries (ASPPA) ASPPA.org ASPPA—the American Society of Pension Professionals & Actuaries—is the premier national organization for over 7,500 retirement plan professionals. ASPPA serves as an educator, voice and advocate for the nation’s retirement system and for retirement policy. Center for Due Diligence (CFDD) thecfdd.com The Center for Due Diligence provides information and strategic services for retirement plan advisors Defined Contribution Institutional Investment Association DCIIA.org DCIIA fosters a dialogue among the leaders of the defined contribution community who are passionate about improving defined contribution plan design. Members include investment managers, consultants, record keepers, insurance companies, plan sponsors and others committed to the best interests of plan participants. Employee Benefits Research Institute (EBRI) EBRI.org EBRI is an independent, nonprofit, and nonpartisan organization. It analyzes and reports research data without spin or underlying agenda. All findings, whether on financial data, options, or trends, are revealing and reliable—the reason EBRI information is the gold standard for private analysts and decision makers, government policymakers, the media, and the public. Free ERISA FreeERISA.com FreeERISA.com provides free access to Department of Labor Form 5500 disclosure filings on more than 1 million retirement and health benefits plans. International Foundation of Employee Benefit Plans IFEBP.org The International Foundation of Employee Benefit Plans is a nonprofit organization, dedicated to being a leading objective and independent global source of employee benefits, compensation and financial literacy education and information.
Alliance Benefit Group–Pentegra
Internal Revenue Service IRS.gov Tax and regulatory information for the retirement plan industry. Larkspur Data Resources larkspurdata.com Larkspur Data Resources offers in-depth information on the entire 401(k) and retirement plan market. Pension and Investments pionline.com Pensions & Investments delivers news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Plan Adviser Planadviser.com Plan Sponsor is an industry resource for advisors and consultants in the retirement plan industry, offering news, articles, and information on practice management and business development. Plan Sponsor plansponsor.com Plan Sponsor is an industry resource for information about the retirement plan industry for plan sponsors providers and advisors. Social Security Administration Socialsecurity.gov Obtain estimates of Social Security retirement benefits Society of Professional Asset-Managers and Record Keepers (SPARK) SPARKinstitute.org SPARK is the nationâ€™s foremost retirement plan industry trade association and is the leading voice in Washington for the retirement plan services industry, developing and promoting practical and balanced solutions on critical issues that impact plan sponsors, participants, and service providers.
SmartPlan EnterpriseSM is a video web-based enrollment tool that offers a quick and easy way for participants to learn about their plan and enroll or update existing choices. Live video hosts discuss how the plan works and discuss the benefits of participation, and then guide participants through an interactive process that helps them discover their retirement needs and risk profile, as well as choose plan investments and contribution amounts. SmartPlan offers participants: •
Plan Basics: An overview of how the plan works, and why a 401(k) is a great retirement savings option
Retirement Needs: A personalized retirement income needs analysis
Risk Profile: A quick questionnaire to help determine what type of investor they are—aggressive, moderate or
conservative, in just a few easy questions
Investments: An overview of the investments available through the plan
Contributions: A discussion of how to choose the amount to contribute to the plan and learn how savings can
add up over time
In just a few minutes participants can create a personalized Investor profile that will help guide their plan investment decisions. And, they can come back as often as they like to update their choices. To view a demo of SmartPlan EnterpriseSM, go to: www.abglogin.com and click on the link “Take a tour of our Participants Website,” then choose the “SmartPlan” tab and select “SmartPlan” to view how it works.
Alliance Benefit Group–Pentegra
FINANCIAL CALCULATORS GUIDANCE PLUS Everyone’s financial situation, time horizon and risk tolerance are different. Our Guidance Plus investment education tools are designed to help participants define their personal investment strategy. Guidance Plus provides a complete array of financial planning tools designed to help participants assemble long-term financial plans and determine whether they are on track to achieve their goals, with investment recommendations, along with a personalized action plan based on each individual’s unique situation. Participants can choose among account modeling tools, a risk assessment tool, paycheck calculator, college planner, loan calculators and asset allocation modules. MANAGE YOUR 401(K) ON YOUR IPHONE OR ANDROID Pentegra offers 401(k) participants the ability to manage your accounts on your Android or iPhone smartphone. This free app is available today. The app provides participants with the ability to view account balances, transaction history, and portfolio performance. 401(k) SAVINGS CALCULATOR A 401(k) can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 401(k) are tax-deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching contributions to your 401(k) account which can range from 0% to 100% of your contributions. The combined result is a retirement savings plan you cannot afford to pass up. 403(b) SAVINGS CALCULATOR 403(b) plans are only available for employees of certain non-profit tax-exempt organizations: 501c(3) Corps, including colleges, universities, schools, hospitals, etc. If you are an employee of one of these organizations, a 403(b) can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 403(b) are tax-deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching contributions to your 403(b) account which can range from 0% to 100% of your contributions. The combined result is a retirement savings plan you cannot afford to pass up. ASSET ALLOCATOR The asset allocation is designed to help you create a balanced portfolio of investments. Your age, ability to tolerate risk and several other factors are used to calculate a desirable mix of stocks, bonds and cash. The calculated asset allocation is a great place to start your analysis in building a balanced portfolio. Click on the “View Report” button for a detailed look at your results.
EDUCATION TOOLS •
24/7 ACCESS My ABG OnLine provides an easy and convenient way for participants and plan sponsors to access and manage their 401(k) plan and conduct transactions 24/7. PLAN SPONSOR ACCESS My ABG OnLine delivers advanced plan management and reporting tools, making it easy to manage the details of your plan and access secure plan-level information and reporting at your convenience. Participant and plan sponsor reports can be viewed and printed daily, monthly, quarterly or annually. My ABG OnLine’s landing page provides a snapshot of your plan as of the most recent market valuation. From there sponsors can move to a variety of other sections on the site, most of which allow for downloading of data to Microsoft Excel so reports can be customized or printed as needed. My ABG OnLine provides plan sponsors with access to: • Plan level data and activity by fund, transaction, or participant for any given time period • Plan level reports, including: • Plan Activity by fund, participant, transaction date or transaction type • Consolidated Activity Report (plan level summary) • Consolidated Activity Report by participant • Contribution Upload Center • Plan transaction history • Employee election data • Employee deferral data • Employee demographic data • Plan Snapshot • Plan Participants • Plan Provisions • Participant census information • Plan demographic information • Plan investment allocations • Online enrollment • Plan forms • Summary Plan Description (SPD) • Participant enrollment and education materials • Plan compliance reports and tools • Current and historical fund performance
Alliance Benefit Group–Pentegra
PARTICIPANT My ABG OnLine provides participants access to: • “Dashboard” landing page • Account information by contribution source • Account information by investment fund • Historical account activity • Full transaction capabilities 24/7, including: • Allocation changes • Loan modeling • Fund transfers • Loan initiation and processing • Account rebalancing • Loan balance and payoff amount Online Enrollment • Personalized rate of return • Account activity • PIN changes • Current account balance • Contribution rate changes • Investment allocation changes • Monthly and historical fund performance • Historical statement information • Account projection tools • Retirement planning tools • Plan announcements and rules