Our 403(b) consulting services is designed to free your organization from the need of having to outsource your 403(b) plan compliance services to a Third Party Administrator (TPA).
Many Third Party Administrators (TPA’s) have taken advantage of the recent IRS 403(b) regulations by scaring public sector employers into entering contracts with them. Although the new 403(b) regulations represent a departure from past practices where 403(b) plans were virtually unregulated, the new rules of the road are not as difficult or onerous as many TPA’s would like you to believe.
In very little time, we can prepare you and your staff to take back control of your 403(b) plan administration. The benefits to your organization include:
- No longer will you be required to coordinate and share personal information (such as employee social security numbers, address, date of birth, etc) with an outside third party
- No more conflict of interest with your TPA and their affiliated agents – who may use the TPA relationship to sell investment products by having preferred status and access to employee personal and confidential information
- Very little ongoing staff time is actually required to fully maintain your 403(b) plan in compliance with IRS rules and regulations
WE PROVIDE YOU WITH THE FOLLOWING SERVICES:
INITIAL SERVICES
- Review and revise your existing 403(b) Plan Document.
- Review and Revise your Hold Harmless and information sharing agreements with each of your existing 403(b) investment providers/vendors
- Create and update an official Approved 403(b) Vendor list
- Prepare a customized Salary Reduction Agreement (SRA) for use by your employees to participate and make changes to their 403(b) contribution vendors and amounts
- Prepare and present a customized 403(b) Administration Guide designed specifically for your organization
ONGOING SERVICES
- Provide staff training in coordinating and monitoring 403(b) compliance
- Perform necessary 403(b) maximum calculation limits (This is one of the only services that you may need to outsource on an ongoing basis. However, in a typical organization less than 5% of participating employee will ever utilize the special catch-up contributions available)
- Monitor the 403(b) compliance environment and update your staff as to any changes in practices and procedures, as needed
- Be an ongoing resource for your staff and employees regarding 403(b) compliance questions and situations as they arise
FEES
We have two models of how we are compensated for our services:
- Direct billing of 403(b) investment providers for each employee who participates in their plan. With this approach, there are NO fees that are billed to the employer. On a monthly basis, we receive a payroll contribution report and bill the participating vendors a nominal fee (typically between $2-$3) per employee who contributes to that investment provider.
- Direct billing to employer. Some employers prefer to pay fees directly. With this approach, we typically assess an initial implementation fee and then implement a nominal annual administration fee. We competitively prices this service based on your organization’s size and specific service needs.