One of the things that makes ADMIN Partners unique as a TPA is that we work with a specific selection of clients. Being in the tax-exempt and government markets, we are working with a number of organizations that have a strong focus/mission. From public schools to non-profits, our clients are concentrated on helping others. This means they often have little time (and sometimes limited budgets) to source an employee just for administration of their retirement plan. This is where ADMIN comes in and saves our clients both time and energy.
In Part One of this series, we want to take a look at how ADMIN can help Plan Sponsors in maintaining their plan document while also helping to alleviate the time consuming burden of contribution administration.
PLAN DOCUMENT MAINTENANCE
Along with the creation of a plan document, there is a responsibly of having the document maintained. From regulatory updates that require amendments to updating the terms set forth within the document in order to meet the Plan’s evolving needs, ADMIN provides our clients with continuous plan maintenance which ensures the Plan’s document is up to date and in compliance with the rules set forth by the IRS and DOL.
One task that demands the most time, energy and resources from an employer is payroll administration. On top of standard payroll requirements, Plan Sponsors must also manage the contributions that are designated for their retirement plan. This can become a daunting task for plans and one that requires hours, especially if the Plan has a multi-vendor arrangement. In situations where there are multiple investment providers, Plans will have to submit a check/ACH payment to each vendor in order to have contributions invested. With some 403(b) clients having 10+ vendors, this is a space where ADMIN really saves the Plan Sponsor.
To alleviate this burden on the Plan Sponsor, ADMIN offers clients a contribution administration service. We use our common remitting software which allows Plan Sponsors to send one payment to our custodian. From there we disperse the various contributions to each investment provider within the Plan.
To piggyback on the payroll responsibilities that ADMIN absorbs, we also assist Plan Sponsors with monitoring the contribution limits for the participants within the Plans. Each year, the IRS sets limits on contributions for the variety of retirement plans allowed. Participants are required to abide by these limits and must also consider all qualified retirement plans they are contributing to. ADMIN Partners uses industry leading software to maintain incoming contributions and flags participants who are close to/exceeding the limits. Our Team then reaches out to Plan Sponsors to make them aware so they can discontinue future contributions.
Stay Tuned! Late this week we will share Part Two which looks at how ADMIN helps Plan Sponsors with annual requirements like Universal Availability & Plan compliance.