RCP

The Retirement Plan Management Services division of RCP Solutions recently attended the ASPPA (American Society of Pension Professionals & Actuaries) Conference in National Harbor, MD.

The ASPPA conference was well attended by TPA (Third Party Administrators), Plan Sponsors, Custodians and Record Keepers who face increasing regulatory scrutiny and risks in dealing with retirement plans.  In this regulatory climate, maintaining accurate data is imperative for providers and plan sponsors to reduce risks and costs.  Plan Sponsors no longer want to wastefully spend money to find out that a participant no longer resides at the address of record or worse, has been deceased for 5 years.

Being proactive and putting together a program that identifies issues allows for the plan sponsor to reduce the opportunity for problems to arise.

Plan providers who are at the forefront of issues such as un-cashed check mitigation, plan termination services and maintaining accurate records are providing enhanced value for their clients.  RCP Solutions exhibited at the conference and discussed ways in which we help providers and plan sponsors understand these issues and execute on programs to resolve them.

By being proactive, fiduciaries are able to reduce unwanted costs and the potential for regulatory risks.

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One of the most important functions for a plan sponsor during a defined contribution plan (401k, profit sharing, etc.) termination is the distribution of assets to the participants. For many, contacting plan participants through normal means—certified mail or phone calls—will result in contact with the participant and ultimately resolves the situation. However, there are many circumstances, such as a participant name change or address change, that prevent communication and cause a “lost participant” status on the account. Finding missing participants is the duty of the plan fiduciary. (more…)

If you’re like most companies, you have lost participants. It is best practice to locate missing participants and property, in a timely and efficient manner. Why? Because for every day unclaimed property remains, it is likely costing your company money and creating risk. (more…)

Because of the layoffs sparked by the current recession, many managers have been compelled to look into what their companies should know about 401k partial termination.

By law, if there is a partial termination of a qualified plan, the plan sponsor must give ALL effected participants the benefits that they have accrued under the plan.

Failure to do so could disqualify the plan and result in significant costs to the employer –

Not to mention possible lawsuits by plan participants who are forced to prematurely recognize income due to the plan’s disqualification. (more…)

401k plan termination may sound like a simple process. After all, each participant receives their own account balance and there is no employer unfunded liability.

For a large employer with a full-size Human Resources department, the 401(k) termination process will be cumbersome but manageable. However, for small employers with limited staff and resources, terminating a qualified plan of any type will be challenging and full of unique and special issues.

There is a complex series of steps that must be meticulously followed. Any errors can result in serious negative tax consequences for both employers and personnel. (more…)