1. Multiple Employer 401(k) Plan
and
Multiple Employer 401(k) Plan
2015

2. Plan Basics Multiple Employer Plan BBSI defines global design
BBSI is “Sponsoring Employer”
Client employer is “Participating Employer”
BBSI defines global design
32 investment selections to choose from, with varying risk
Hardship provision allows distribution for “Safe Harbor Events”
Client employer defines plan design
Eligibility requirements (age, service, entry)
Plan type (profit sharing, safe harbor, discretionary match, etc.)
Employer contribution
Vesting schedule
Age eligibility could be 0 (no age requirement), 18, 19, 20 1/2 or 21 years of age that the employee must be to participate.
Service eligibility could be 0 (none), 3, 6, 9, or 12 months that the employee must be employed before they may participate.
Entry eligibility is the entry date when someone may enroll in the plan. This could be upon hire, the 1st day of any month or the 1st day of any quarter.
Vesting schedule could be immediate (required for safe harbor plans), a 3 year cliff, a 5 year graded or a 6 year graded schedule.

3. Ease of Administration
BBSI:
coordinates plan compliance and administration
provides data and contribution transmittal
calculates employer contributions & can EFT client
procures annual audit services and files Form 5500
Transamerica provides employee eligibility notification
Dynamic employee and client employer Web site
Paperless online enrollment and transactions
Plan is portable to client companies
Client Administration Fee = $250 one-time set up + $300 annually (billed quarterly). Termed Client Fees Apply.

4. Transamerica Retirement Solutions
Daily valued, multi-fund family product
32 fund options accessing 8 fund families
Annual Recordkeeping Fee to the participant
$33 per participant per year, quarterly on statement
Contract charge based on entire BBSI Plan assets currently .32% (as of 01/01/2015)
No Distribution Fees
Loan Option (see SPD for more information)
Minimum amount is $1,000, maximum of 50% of vested account, not to exceed $50,000.
Repaid within 5 years.
2 Loans at a time
$50 one-time loan fee + $50 annual loan fee + finance charge

5. Retirement Plan Basics
Employee Salary Deferral Limits for 2015:
$18,000 for all participants
$24,000 for participants born in 1965 or earlier
Total annual allowable $ limit to employee’s account (employee + employer contribution)
Lesser of $53,000 or 100% of income
EE Compensation Limit in 2008 is $230,000. 
For Safe Harbor Match the ER contribution would be limited to $9,200 (230,000 x 4%)
For Safe Harbor Non Elective would be limited to $6,900 (230,000 x 3%)

6. 401(k) Safe Harbor Options
Safe Harbor Plan Designs
Matching
Non-Elective formula
Benefits of Safe Harbor Plan Designs
Enables a plan to forego the complicated testing required each year
NO ADP/ACP testing required and will enable plan to satisfy Top Heavy Contribution requirements
ADP is Average Deferral Percentage
ACP is Average Contribution Percentage
Top Heavy is when highly compensated employees’ account balances are more than 60% of the non-highly compensated employees.

7. Safe Harbor Plan Options
Safe Harbor Match
$1.00/$1.00 match for the first 3% of employee contributions, .50/$1.00 on the next 2% of employee contributions
Must be 100% vested and declared at least 30 days prior to beginning of each plan year
Cannot estimate cost as it depends on how many employees enroll but maximum cost would be 4% of eligible compensation (if every employee enrolled)
Safe Harbor Non Elective
3% of eligible compensation to employee
Must be 100% vested and declared 30 days prior to the beginning of each plan year
Cost is 3% to all eligible employees
For Safe Harbor Match the ER contribution would be limited to $9,800 (245,000 x 4%)
For Safe Harbor Non Elective would be limited to $7,3500 (245,000 x 3%)

8. Safe Harbor Plan May be suitable for:
Plans unable to maximize HCE deferrals
Companies with lots of HCEs
Top heavy plans
Groups with low participation or have a history of failing ADP/ACP tests
Employer match already close to the Safe Harbor level
100% vesting is not of major concern
Highly Compensated Employee is:
Employee who is a 5% owner or more, OR
Received compensation in excess of $110,000 in 2009, OR
Family member (spoue, parent, child)

9. Profit Sharing Plan May be suitable for:
Employers who want to reward employees for their contributions to the success of the company and want the flexibility to change contribution levels annually
May be used concurrently with a 401(k) plan
Employers who want to vary contributions by employee groups

10. Sales Process Review Executed contract & account set up with
TransAmerica and BBSI.
Client interested in 401(k)
401(k) Survey
Completed
(Forwarded to
Branch then to Corp.)
Enrollment Kits ordered,
Enrollment Workshop
Conducted, Participants can
Enroll & Begin Deferrals
Client receives customized
marketing materials
Client contacted
& signed up
by TransAmerica
Sales Consultant

11. Participant Resources
Transamerica:
Participant website:
Toll-free Participant Call Center:
Check account balance, fund performance and current asset allocation
Change future asset allocation or transfer money between investment options
Access Retirement Planning Tools
Morgan Stanley Investment Advisors:
At no additional charge we offer unlimited access to financial planning services by our prestigious investment advisory partner, Morgan Stanley.