administration & compliance service (acs) to the rescue! your total remittance and compliance...
TRANSCRIPT
Administration & Compliance Service (ACS) to the Rescue!Your Total Remittance and Compliance Solution for 403(b)/457(b) Plans
403(b) Regulation Requirements Written Plan Document New Restrictions on tax-free transfers
90-24 Transfer Modifications Now called “exchanges” may move to other 403(b) plans
within the employers vendor list
New Requirements on the timing of remitting salary reduction contributions Must be submitted by the 15th day of the month following
deduction Universal availability requiring annual notification
Employer Responsibilities
IRS states....public School Districts do not have “fiduciary responsibility” however they do have responsibility for “tracking the information”
IRS Regulations do not require public School District employers to track performance of investments
Responsibility (cont.)
ERISA Plans require plan sponsors to perform fiduciary duties
Governmental Plans are exempt from ERISA Public Schools are exempt from ERISA The IRS has no authority to create fiduciary
responsibility School Districts do not have fiduciary duties
related to 403(b) Programs
Vendor Selection Responsibility None ACS will accept any/all vendors that adhere
to established requirements Limiting vendors may increase employer
liability and create unnecessary employee discontent/confrontation
Participating Vendors
All vendors that sign required Information Sharing, Hold Harmless, and Compliance Agreements
All vendors that agree to share information electronically in accordance with data privacy practices
All vendors that agree to share in costs associated with processing
ACS Features
Educators Benefit Consultants is a Third Party Administrator specializing in the compliance needs of Public Sector employers administering 403(b)/457(b) plans. We call this service the Administration and Compliance Service (ACS).
Simplified Plan Administration
Data goes from District payroll system into ACS database
Contribution reports are produced automatically Reports are reviewed and reconciled on secure
website Reports are submitted electronically to each vendor Single payment remitted electronically from District
to ACS
ACS-Services
Coordinate Vendor Information Sharing Agreements Remit all contributions to respective vendors
One Payment to ACS Hold Harmless Agreements with Vendors Compliance Notices
Minimum distribution requirements communicated to participants
Provide Written Plan Document Documents reviewed for Federal and State compliance
ACS-Services (cont.)
Keep Districts apprised of new compliance and legal requirements and upgrade system accordingly
Provide template for annual “Universal Eligibility” notice
Website Features
Secure Website Access Webpage with participating vendors and links
to those vendors Universal Salary Reduction Agreement
Downloadable Employer access to contribution and
transaction history
Website Features (continued)
Payroll login Upload contribution file Report printing and reconciliation
Able to track loans, transfer and hardship withdrawals
Access to historical data for limits ACH transfer to one source
ACS Pricing
# of Employees Base Monthly Fee Initial Set Up Fee
0-100 $50 $500
101-250 $100 $500
251-500 $150 $1000
501-1000 $200 $1000
1001-2000 $250 $1000
2001 or greater Quote Quote
Proposed pricing standard may be subject to change
Why ACS?
Simplified Plan Administration Licensed Third Party Administration Multiple Vendors Available
Maintain employee satisfaction Low cost solution for District Ongoing Compliance
403(b) Admin & Compliance Service
263 Employer Groups 261 Public Schools 33,186 Participants
Questions
Derrick Nelson 763-689-0111 855-369-5518 [email protected]
Paige McNeal 763-552-6053 888-507-6053 [email protected]
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