db 3(16) directed trustee nuvision federal cu
DESCRIPTION
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Pentegra’s proposal for 3(16) Plan Administrator, Directed Trustee, Administration and Recordkeeping Services for
NuVision Federal Credit Union
Defined Benefit Plan
Prepared by: Ken Jackson
Pentegra Retirement Services May 2016
Pentegra Retirement Services 3
TABLE OF CONTENTS
The Pentegra Advantage 7
Fiduciary Outsourcing 11
Investments 13
Participant Services 17
Fees 19
Next Steps 23
Pentegra Retirement Services 4
EXECUTIVE SUMMARY NuVision Federal Credit Union Defined Benefit Plan
PROPOSAL FOR: 3(16) Plan Administrator, Diirected Trustee, Administration and Recordkeeping Servces PREPARED BY: Ken Jackson, Regional Director
3(16) Fiduciary Outsourcing Fiduciary outsourcing allows employers to get out of the business of retirement plan fiduciary oversight and focus on what they do best by outsourcing their three principal fiduciary roles to Pentegra:
– Principal Named Fiduciary – 3(16) Plan Administrator – Directed Trustee
Advantages Pentegra can provide you and your employees
Having been created by the Federal Home Loan Bank System in 1943, Pentegra was formed as a not for profit cooperative, neither owned nor controlled by an investment management, mutual fund, bank or insurance company - providing you with independent oversight.
Financial Institution Focus As a financial institution retirement plan specialist, we are keenly aware of the challenges you face today. And it is that concentration and expertise that has made us the retirement plan provider of choice for financial institutions nationwide. Pentegra’s qualified retirement plan solutions have been selected as the exclusive Preferred Partner for credit unions by NAFCU Services Corporation.
Outsourcing of Fiduciary Roles, Responsibilities and Liabilities
Outsourcing is the hiring of a professional to provide a service more efficiently and effectively than utilizing resources within the company. Organizations outsource many services, including: payroll, building maintenance, and legal defense producing cost savings, better outcomes, and increased productivity.
Additional benefits with fiduciary outsourcing include: – Reduced liability – Independent objectivity – Fewer conflicts of interest – Increased service standards
Actuarial and Consulting Services
With a complete staff of enrolled actuaries and certified consultants, we provide you complete actuarial support for your pension plan. We will work with you to provide realistic assessments of the impact of workforce demographics on your retirement plan, funding requirements and retiree benefits adequacy.
Pentegra Retirement Services 5
THE PENTEGRA DIFFERENCE FOR YOUR BUSINESS
WHAT MAKES US DIFFERENT We provide services that are unique - fiduciary liability relief to credit
unions and their board members. Pentegra’s qualified retirement plan
solutions have been selected as the exclusive Preferred Partner for
credit unions by NAFCU Services Corporation.
WHO WE ARE Founded in 1943 to provide actuarial services.
We are an independent regulated financial institution – Pentegra Trust Company.
Provide administration and recordkeeping to over 3,600 plans nationwide.
Based on our annual client survey, we consistently have equaled or exceeded the expectations of 97%
of clients.
WHAT WE DO Provide integrated investment and actuarial teams.
Relieve plan sponsors of fiduciary responsibility
by assuming all three ERISA roles – Named
Fiduciary, Trustee and 3(16) Administrator.
Discretionary trustee services.
PLAN TYPES WE SUPPORT Defined Contribution
– 401(k) plans – Profit Sharing Plans – KSOPs – ESOPs – SERPs – 403(b) plans – 457 (b) plans
Defined Benefit
– Traditional Pension plans – Cash Balance plans – DB/DC Combination plans
Non-qualified Executive Benefit
Benefits Financing Strategies
Third Party Administrative Services
Pentegra Retirement Services 6
PENTEGRA’S SERVICE MODEL
PLAN ACTUARIAL SERVICES
Annual actuarial valuation report
Development of maximum and minimum funding requirements
Determination of required quarterly contribution requirements
Summary of valuation results and comments for the current year
Calculation of the PBGC premium payment due each year
Preparation of ASC 715 valuation
Annual response in connection with plan audit
CALL CENTER
Through our Call Center, your
employees can speak with our
Customer Service Representatives.
All calls, correspondence and
records are tracked through a fully
integrated customer service system,
ensuring continuity of service and
allowing any Customer Service
Representative to work with any of
your employees, at any time.
Hours: 9:00 am to 8:00 pm EST,
Monday through Friday
Call Center Compliance YOUR
ORGANIZATION
Fiduciary Relief
Benefit Payments
Actuarial Services
Trustee Services
ERISA Attorney
Employee Communication
CUSTOMER SERVICE CENTER When and where it’s convenient for your employees 866-633-4015
INVESTMENT TEAM Investment policy statement and investment manager oversight
PLAN CONSULTANT
The primary point of
contact and technical resource
ACTUARY
Provides annual valuation
and funding contribution recommendation
PLAN SPONSOR
Pentegra Retirement Services 7
PENTEGRA DEFINED BENEFIT PLAN SERVICES
Service Included
Annual actuarial valuation report Development of minimum funding requirements Determination of required quarterly contribution requirements Maximum allowable deduction and funding level recommendations
Summary of valuation results and comments for the current year
Annual meeting to discuss actuarial results and any regulatory updates Analysis and reconciliation of the present value of accumulated benefits in
accordance with SFAS
Calculation and reporting of Net Periodic Benefit Cost for the fiscal year Calculation of the PBGC premium payment due each year and preparation of
Schedule A Preparation of FAS-87 valuation results Annual response in connection with plan audit
FAS 132 and FAS 158 year-end disclosures Development of an investment policy statement
Plan performance, including risk adjusted performance, on a quarterly basis A process to monitor these funds relative to benchmarks and investment policy on an ongoing basis and recommend replacement managers An asset/liability analysis to help determine the appropriate asset allocation, risk management and investment selection
Custody and investment of plan assets Participant-distribution checks and benefit payments, including lump sum distributions and periodic payments
Certified plan financial information from plan auditors State income tax withholding services for mandatory states Tax reporting (IRS Form 1099R) For a non-frozen plan, benefit statements every year and for frozen plans, benefit statements once every three years.
Pentegra Retirement Services 8
PENTEGRA ONLINE
Plan sponsors can access plan and account information via Pentegra.com.
PLAN SPONSOR WEBSITE
Access plan-level data and activity
Access plan-level reports
Review participant information
Add participants to your plan, change existing member information and submit information regarding
member termination or retirement
Access forms used to administer your plan
Download participant enrollment and education materials
View plan documents, Summary Plan Descriptions and Summary Annual Reports
View Actuarial Valuation Reports
View information about legislative and regulatory issues affecting
Pentegra Retirement Services 9
PARTICIPANT ANNUAL BENEFIT STATEMENT
Pentegra Retirement Services 10
PLAN FEES NuVision Federal Credit Union Defined Benefit Plan The pricing outlined in this proposal is valid for 90 days.
ONE-TIME PLAN TRANSITION FEES
Base Transition Fee Waived – NAFCU Member
ANNUAL FEES FOR RELIEVING YOU OF BEING THE:
Principal Named Fiduciary 3(16) Plan Administration Directed Trustee
Base Fee $ 8,500 Per Participant Fee
1 – 100 participants $60 101 – 250 participants $50
Asset-Base Fee Schedule - Basis points (bps) assets up to $ 10 million 5 bps (0.05%) assets above $ 10 million 2 bps (0.02%) Calculated rate based on current assets3: 5 bps
SERVICES INCLUDED IN ANNUAL FEE
ACTUARIAL VALUATION AND REPORT Development of actuarial value of accrued liability and assets, determination of minimum funding requirements and maximum tax deductible contributions; determination of funded ratios and of any benefit restrictions; preparation of Actuarial Certification Funding Target Attainment Percentage (AFTAP); preparation of Schedule SB of Form 5500 actuarial certification.
ANNUAL REPORTING AND DISCLOSURE Preparation of IRS Form 5500, PBGC Form-1 filing, and Annual Funding Notice to Plan participants.
COMPLIANCE TESTING AND REPORTING 401(a)(26) Minimum participation test, 404 maximum deductible contribution calculations, 410(b) Coverage testing, and 415 Annual Benefit Limitations.
PAYMENT OF FEES
The employer may choose to pay any of the fees or have them debited from the plan, with the exception of settlor fees (e.g., plan design or plan termination studies).
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ADDITIONAL PLAN SERVICES Additional, out of scope consulting services $150 - $450 per hour
Additional Consulting Services such as actuarial cost studies, benefit goal setting, plan design studies, merger and acquisition studies, early retirement window studies, special presentations, plan amendments, plan documents, IRS submissions due to faulty data and any other projects requiring written responses are charged on an hourly basis. We will provide a fee quote upon request for any additional consulting services.
Optional Benefit Modeling Service (annually) $ 1,500 Annual Participant Benefit Statements Included
FAS ASC715 Year-end Reporting and Annual Expenses $ 2,500
Non-discrimination testing for non-Safe Harbor formulas Hourly rate
Monthly retirement benefit calculation (per calculation) $ 250 Calculation of monthly retirement benefits (deferred/immediate) under optional payment methods as prescribed by plan document with benefits illustration
Additional dates of commencement or termination $ 125 Must be requested at time of original calculation
Monthly retirement benefits for frozen benefits $ 150
Terminated vested / Pre-retirement death / Cashout packages (each) $100 per package in addition to benefit calculation fee
Retirement processing services (one time set up fee) $ 175
Retirement benefit payment processing $50 per retiree per year
Post-retirement death benefit processing $ 175
Pentegra Retirement Services 12
COMMENTS
Pentegra Retirement Services assumes that the plan document will include provisions to conform to our administrative practices. For terms of service, including the details of the scope of Pentegra’s Fiduciary Outsourcing Program, see the Service Agreement. Pentegra assumes that the transfer of plan participant data will be received via electronic format in the prescribed record layout provided by Pentegra. Pentegra will bill installation services following the completion of a signed Consulting Agreement. Annual actuarial administrative recordkeeping will be billed at the beginning of each year or may be billed quarterly. Payment is due within 30 days of billing date and interest charges for late payment may apply. Pentegra retains the right to increase its fees periodically, but not more frequent than annually. Notice will be provided prior to any increase.
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SEAMLESS PLAN TRANSITION We ensure accurate and timely transition by a team of professionals who have successfully transitioned hundreds of plans with varying demographics and parameters from a variety of providers.
Pre TransitionSubmit Plan Documents for review
Weeks 1 - 2Call to review timeline and Service Agreement
Weeks 3 - 4Review and execute plan document
Weeks 5 - 6Investment Policy Statement Call
Weeks 7 - 8Submit new enrollments and contributions
Pentegra Retirement Services 14
PENTEGRA REGIONAL OFFICES CORPORATE HEADQUARTERS
108 Corporate Park Drive
White Plains, New York, 10604
NORTHEAST
Shelton, Connecticut
Hamilton Square, New Jersey
Belle Mead, New Jersey
Wyckoff, New Jersey
Hopewell Junction, New York
Montpelier, Vermont
SOUTHEAST
Asheville, North Carolina
Charlotte, North Carolina
Greenville, South Carolina
SOUTH
Atlanta, Georgia
Tampa, Florida
Baton Rouge, Louisiana
MIDWEST
Louisville, Kentucky
Chicago, Illinois
Minnetonka, Minnesota
Cincinnati, Ohio
Columbus, Ohio
Toledo, Ohio
CENTRAL
Dallas, Texas
San Antonio, Texas
WEST
San Diego, California
San Francisco, California
Orange County, California
Phoenix, Arizona
Denver, Colorado