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

90-24 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 15th 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 Employees Base Monthly Fee Initial Set Up Fee

0-100 $50 $500

101-250 $100 $500

251-500 $150 $1000

501-1000 $200 $1000

1001-2000 $250 $1000

2001 or greater Quote Quote

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 763-689-0111 855-369-5518 derrick@ebcsolutions.com

Paige McNeal 763-552-6053 888-507-6053 paigep@ebcsolutions.com

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