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  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 15 th 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 EmployeesBase Monthly FeeInitial Set Up Fee 0-100$50$ $100$ $150$ $200$ $250$ or greaterQuote 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    Paige McNeal   

THE END