Services
ALABAMA: 256.878.4110
MISSISSIPPI: 601.939.2902
TOLL FREE: 800.545.6741
Building a Better Retirement
TOGETHER
SERVICES
Partnering with Benefit Professionals, Inc. means we are here to help with the planning, implementation, and administration of your retirement plan. There are different plans and long-term solutions for each company and we are here to help you meet all the standards and goals you want to meet at the highest quality of performance. We want to get to know you - it's all part of our southern hospitality DNA.
PLAN DESIGN &
IMPLEMENTATION
COMPLIANCE &
REPORTING
3(16) FIDUCIARY
SERVICES
PLAN
ADMINISTRATION
PLAN DESIGN & IMPLEMENTATION
PLAN DESIGN & IMPLEMENTATION
Planning is important.
This is especially true when it comes to retirement plans. The purpose of a retirement plan is to provide a way for employees to save for their future. The design and operation of a retirement plan is the key to its success.
The design of a retirement plan has a tremendous affect on a number of items, including:
- Overall participant retirement account balances
- When, how, and to what extent an employee participates in the plan
- Total cost to administer the plan
- Type of plan implemented and maintained
- Number of plans a company sponsors
- Features allowed in the plan
- How the employee funding cost is allocated to the plan sponsor
It is very unlikely a company will have the same design for its plan as the company across the street. We do not offer “cookie cutter” plans to clients. We meet with each client to discuss their company’s demographics and goals and then design the plan that best suits the company’s needs.
We also recognize that needs change over time, whether it’s due to company or legislative changes. We help clients periodically evaluate their plan and make any necessary changes to ensure the plan always serves their needs.
TYPES OF PLANS ADMINISTERED
Benefit Professionals, Inc. provides the following types of plans:
- 401(k) plans
- Profit sharing plans
- Cash balance plans
- 403(b) plans
- Employee stock ownership plans (ESOPs)
- Defined benefit plans
- Multiple employer plans (MEPs)
- Money purchase plans
- Auto enrollment plans
- Section 457 plans
COMPLIANCE & REPORTING
Testing and Corrections
Each retirement plan is subject to annual compliance testing and reporting. In order to prove that a retirement plan is not discriminatory toward certain employees, it must undergo various non-discrimination tests. If the plan fails a test, the plan sponsor must correct the plan and may incur penalties associated with the failure.
Information about a retirement plan must also be reported to the IRS. Total assets, total number of participants, failure to timely submit contributions, and amount of a fidelity bond are just a few of the items the IRS is interested in knowing about a retirement plan. If a plan has more than 120 participants, it is required to provide even more information and undergo an annual audit performed by an accounting firm.
Benefit Professionals, Inc. performs annual compliance testing for our clients and prepares and files the necessary forms to report information to the IRS. We also maintain records of compliance testing, government filings, and plan documents and can provide these to the IRS or DOL if the plan is ever audited.
3(16) FIDUCIARY SERVICES
Benefit Professionals, Inc. partners with 401K Safe, LLC, a company that provides 3(16) fiduciary services to clients.
WHAT IS A 3(16) FIDUCIARY PLAN ADMINISTRATOR?
A 3(16) Administrator (not to be confused with a Third-Party Administrator) serves as the Plan Administrator and Plan Trustee. These are fiduciary roles that are normally designated to the Plan Sponsor (usually the owner of the company sponsoring the retirement plan). A 3(16) Administrator handles many responsibilities for the retirement plan, including the following:
- Reviewing and signing the Form 5500 (annual tax filing for the plan)
- Signing plan amendments and service agreements as Trustee
- Reviewing and ensuring all plan-related documentation is compliance audit-ready
- Monitoring ERISA 3(21) and 3(38) plan fiduciaries
- Maintaining Trustee minutes for the plan during the year
- Retaining leading ERISA attorneys for plan oversight
- Conducting due diligence prior to the start of service to ensure the plan is in compliance
- Periodically conducting industry benchmarking to ensure the plan is paying reasonable and customary fees and expenses
WHY IS THE 3(16) PLAN ADMINISTRATOR SO IMPORTANT?
The majority of retirement plan mistakes and corrective measures do not involve the plan’s investments or the investment manager(s), but rather stem from errors in the administrative functioning of the plan itself. As the world of plan administration becomes more complex, so do the fiduciary responsibilities of the 3(16) Plan Administrator. With the advent of more frequent audits by the DOL and IRS, it is increasingly more important to make sure retirement plan administration is completed timely as well as accurately to ensure the plan sponsor is insulated from potential fines and penalties associated with errors in a retirement plan.
WHO SHOULD HIRE A 3(16) PLAN ADMINISTRATOR?
- Plan sponsors who lack the appropriate time to ensure all administrative functions are carried out
- Plan sponsors who lack the appropriate experienced personnel
- Plan sponsors who have high turnover in operations or are operating with limited staffing in their operations and want to ensure the plan operates correctly
- Plan sponsors who are concerned with their fiduciary liability under ERISA and with the DOL and IRS
PLAN ADMINISTRATION
WHAT IS A THIRD PARTY ADMINISTRATOR?
A Third-Party Administrator (TPA) is an outside party hired by the sponsor of a retirement plan to complete a portion or all compliance and reporting responsibilities of the plan. These duties include, but are not necessarily limited to the following:
- Annual non-discrimination testing
- Preparing and filing the Form 5500 (tax return for the plan)
- Calculating employer contributions to the plan
- Tracking participant vesting levels
- Processing distributions, including loans
- Preparing required annual reports
- Reconciling the plan trust
- Monitoring timing of contribution deposits to the plan
- Preparing and maintaining the plan document
- Remaining up-to-date with the ever-changing ERISA laws for the plan sponsor
WHY IS A THIRD PARTY ADMINISTRATOR SO IMPORTANT?
There are many duties that must be performed to ensure that retirement plans are compliant with today’s complex tax laws. Due to the recent changes, as well as the recent Fee Disclosure Rules becoming effective, a “perfect storm” has emerged against plan sponsors. Both the Internal Revenue Service (IRS) and the Department of Labor (DOL) have become increasingly interested in the overall compliance of retirement plans. This increased interest has led to the hiring of additional agents to conduct retirement plan audits. These new auditors are out there actively looking for mistakes. A retirement plan’s compliance has never been more important than now. A seasoned TPA can keep plan sponsors out of hot water with the Department of Labor and the Internal Revenue Service when that inevitable audit occurs.
WHO SHOULD HIRE US AS YOUR THIRD PARTY ADMINISTRATOR?
- Plan sponsors who lack the appropriate time to ensure that all administrative functions are carried out
- Plan sponsors who lack the appropriate experienced personnel
- Plan sponsors who have high turnover in operations or are operating with limited staffing in their operations and want to ensure the plan operates correctly
WHY UTILIZE BENEFIT PROFESSIONALS, INC AS YOUR THIRD PARTY ADMINISTRATOR?
The Third-Party Administrator arrangement with us versus the bundled model (combining the administration within the product itself) is an argument as old as retirement plans themselves. So, what is the difference? In a nutshell, our TPA arrangement provides greater flexibility, more plan customization, and personalized service.
Small- to mid-sized companies need more personal attention than larger companies. The lack of resources and fewer HR staff in small- to mid-sized companies means a lack of expertise and time to manage the retirement plan. A TPA bridges the gap by becoming the expert needed to ensure the plan stays in full compliance. With our TPA arrangement, the administration as well as the plan investments can be customized. This means minimal disruption to the participants when there are changes in the design, investments, or providers associated with the plan.
WHAT WORK WOULD WE DO FOR YOU AS YOUR TPA?
- Complete and file the Form 5500 & applicable schedules
- Maintain the compliance of the plan document and assist in interpreting its provisions
- Review requests for loans
- Review distributions, hardship withdrawals, and qualified domestic relations order (QDRO) requests for accuracy and completeness
- Prepare and provide the Summary Annual Report (SAR)
- Provide plan valuation report
- Generate an annual participant benefit statement
- Complete all compliance and non-discrimination testing
- Review the employee census
- Determine and track employee eligibility
- Calculate and track participant vesting
- Reconcile plan assets and money sources
- Reconcile participant accounts
- Calculate employer/company contribution(s) to the plan
- Assist with any IRS or DOL audits