Submitting Your Retirement Contributions to ADMIN Partners

Transcription

1 403(b) Payroll Administration Reference Guide This reference material is designed to outline the documents, processes and procedures for administering your 403(b) retirement plan contributions through ADMIN Partners. Submitting Your Retirement Contributions to ADMIN Partners Special Note: Regardless of how you submit Plan contributions and data, the ADMIN Partners team must process your first contributions. First, we need to establish your Plan and load the Plan participants into our Retirement Plan Administration System. There are several items we need from you: The baseline data file containing the information on actively contributing participants and those participants that made or received plan contributions after January 1, The participant information is loaded into our Administration System. A completed Employer Information Form A completed Web Services Checklist A completed and signed Cash Custodial Agreement Completing the Employer Information Form There are four parts to the Employer Information form. In Part I we ask for demographic information. Part 2 of the document asks whether you sponsor other retirement plans for employees and whether the employer owns or controls any other organizations. In Part 3 we ask for contact information for the plan transition and for payroll activities. In the last section, we request information on your payroll/remittance schedule for your plan contributions. This information allows ADMIN to sync your payroll/remittance cycle in our system to ensure proper contribution crediting. We also ask whether you have any special payroll cycles (i.e. employees that receive paychecks differently from the normal cycle) or different payroll cycles for different employee classifications. Complete the additional Schedules if you have more than one payroll group and you plan to remit those contributions separately.

2 Completing the Web Services Checklist All employers have access to plan level information via our secure website. We provide you with a standard reporting package unless your plan requires custom reports. On Page 1 of the form, please document the manner in which you plan to submit employee contribution data to us and the method you wish to submit the funds to our custodial bank. ADMIN offers a variety of ways to submit participant contribution data including: a secure file upload process, secure , secure web portal or a paper roster. We also offer several methods to send retirement contribution funds to our custodial bank: a fed wire or ACH transmission that you initiate, a ACH transmission that ADMIN initiates a special authorization form (you designate a specific account from which we draw the funds) must be executed, or a paper check. Please indicate your preferences on the form. On Page 2 of the form, please indicate those of your staff who will have full access to the Sponsor web site. Full access includes participant level account detail. For employees using our website to submit contributions, you can list employees who should have the ability to submit contributions via the web Data Validation Center. This level of access does not allow the employee to view any plan or participant level data. Completing the Cash Custodial Agreement Before our Custodial Bank can accept your first contributions, you must complete and execute a Cash Custodial Agreement. This document authorizes ADMIN Partners to establish a contribution depository account in the name of your organization s plan. [Note a separate agreement is necessary for each retirement plan we administer on your behalf.] You submit your retirement plan contributions directly to our custodial bank, Mid Atlantic Trust Company (MATC) and not to ADMIN Partners. 2 P a g e

3 Please complete the Plan Sponsor contact information on Page 2 and sign the Corporate Officer line on page 3 of the agreement. If you have not done so already, submit a copy of the Board Resolution that formally adopts your 403(b) Plan. Your Retirement Plan Custodial Account As noted above, ADMIN Partners establishes an individual account in the name of your retirement plan with our Cash Custodian. Your account number is the Plan ID # which can be found on the bottom of Page 1 of the Custodial Agreement (the bottom right hand box; the number starts with AD ). To ensure proper posting of your contribution deposit, please be sure to include this number on your check or in the special instructions section of our ACH or wire. If you will be sending a paper check to the Custodial Bank, it should be made out as follows: MATC FBO 1 [INSERT Employer Name] 403(b)* Plan * Use appropriate plan tax type identifier when remitting contributions other than a 403(b) Plan) PLEASE DO NOT MAKE YOUR CHECK PAYABLE TO ADMIN PARTNERS. This would cause significant contribution processing delays. Checks are deposited on the business day received and made available the following business day. The mailing addresses for regular mail and overnight delivery are: Paper Checks via US Postal Service Payable to: Mid Atlantic Trust Company FBO: Plan Name P.O. Box Pittsburgh, PA To Send Checks via Overnight Delivery 1 FBO stands for For Benefit Of 3 P a g e

4 Mid Atlantic Trust Company 1251 Waterfront Place, Suite 510 Pittsburgh, PA Reminder: Your AD Number must appear on face of check to ensure proper crediting. Submitting retirement plan contributions to our Custodial Bank electronically and the availability of those funds If you wish to send funds electronically, you can do so with a Fed wire or ACH submission. Fed wire funds are usually available the same business day they are received. ACH funds are made available by the bank twice daily (AM and PM). Here are the instructions to initiate a fed wire and ACH submission. To Wire Transfer Funds: Huntington Bank 7 Easton Oval Columbus, OH ABA Number: Account Number: Account of: Mid Atlantic Trust Company OBI: # Bin Number # (your existing AD Number) Further Credit to: Plan Name To Send Funds via ACH: ABA Number: Account Number: Mid Atlantic Trust Company For Further Credit: # Bin Number # (your existing AD Number) and Plan Name For an ACH transaction that ADMIN Partners initiates, please complete and execute an ACH Authorization form. Sending Employee Contribution Data 4 P a g e

5 You can submit retirement plan contribution data to ADMIN in a variety of ways ranging from several electronic methods to transmitting a data file to mailing a paper employee roster. As you review these options, keep in mind that mailing a check and a contribution report will add several days to processing your contributions. We strongly recommend that all 501(c)(3) clients use an electronic method to submit contribution data and funds because of the Department of Labor s (DOL) published regulatory guidance on the timely submission of employee retirement contributions. Regardless of the method you chose, we only need basic information to process your employee contribution file. The necessary fields include: First Name, Last Name, Social Security Number and your per pay contribution amounts. The per pay contribution amounts must be segregated by the sources allowable in your plan; for example, employee pre-tax contribution, employee post-tax contribution and employer contribution. Our ADMIN staff will provide you with the layout based on the unique contribution sources available in your retirement plan. If you already have a contribution report generated by your payroll system or outside payroll service, we will be happy to review the format to determine whether it can be used by us to process your contributions. Here is an overview of each method that can be used to send Data. Secure SFTP SFTP stands for Secure File Transfer Protocol. SFTP is a method of transferring files between computers over a secure SSH secure data stream. To utilize SFTP, ADMIN must establish a file folder in the name of your organization on a secure server housed internally. ADMIN staff will also provide you with a unique password and user ID. To submit the file, we recommend using one of several free SFTP software programs like WinSCP or FileZilla. If your technology group is not already utilizing one of these programs, you can ask them to install the package on your computer. You can review additional information about these programs by going to or A member of ADMIN s staff will be happy to speak with you or a member of your technology staff about these tools by calling Secure Using a basic spreadsheet format, you can easily send a contribution file to your Client Services team for handling. We only need basic information to process your employee contribution file: 5 P a g e

6 First Name, Last Name, Social Security Number and your per pay contribution amounts. The per pay contribution amounts must be segregated by the sources allowable in your plan; for example, employee pre-tax contribution, employee post-tax contribution and employer contribution. Our ADMIN staff will provide you with the layout based on the unique contribution sources available in your retirement plan. ADMIN has a special box established for sending an Excel or CSV file. The address is: operations@youradminpartners.com If you decide to use this method, we recommend that you password protect the Excel file (you can send the password to the same mailbox simply indicate the name of the plan and the password in the body of the ). For added protection, you may also consider sending the attachment as a ZIP file that is also password protected. A member of ADMIN s staff will be happy to speak with you or a member of your technology staff about these tools by calling You will find the basic instructions to password protect an Excel spreadsheet on the following page. 6 P a g e

7 Set a password in an Excel spreadsheet To encrypt your workbook and set a password to open it: 1. Click the Microsoft Office Button, point to Prepare, and then click Encrypt Document. 2. In the Password box, type a password, and then click OK. You can type up to 255 characters. By default, this feature uses AES 128-bit advanced encryption. Encryption is a standard method used to help make your file more secure. 3. In the Reenter password box, type the password again, and then click OK. 4. To save the password, save the file. Direct Web Processing ADMIN s retirement plan administration and record keeping system offers employers the ability to submit an employee contribution file in a secure manner through your own on-line portal. The web process is an easy to use secure file upload/file validation process. ADMIN will give you the proper file format all you need to do is make any contribution change, additions, etc. each 7 P a g e

8 pay cycle. If you are interested in learning more about processing contribution via the web, an ADMIN team member can give you a personal demonstration. Paper Contribution Roster We can also accommodate a paper roster. Simply include the contribution report along with the check that you send to our Cash Custodian, Mid Atlantic Trust Company (MATC). Once MATC receives the material by mail they will deposit the check in your plan s account, scan all paperwork and reports and overnight the material directly to ADMIN Partners. Handling new plan enrollees and contribution changes A Salary Reduction Agreement (SRA) must be completed and signed by any employee who starts a new 430(b) account or makes any change to their 403(b) contribution amount or investment provider. If an employee defers contributions to more than one plan investment provider, please make sure the employee lists each deduction amount separately. After making any participant changes to your 403(b) payroll reduction/deduction records (after you close the last payroll period before submitting your contributions), send all SRAs for that period to ADMIN in a single batch. ADMIN can accept scanned copies, a fax or mailed copies of the SRAs. By sending the SRAs when you close payroll, it gives us time to make any changes on our end before you submit your contribution data. You can fax any Salary Reduction Agreements or any other documents to us using: A contact sheet containing our toll free, fax and mailing address is provided under separate cover. If you have any questions, please contact our Client Service team using our toll free number: Your ADMIN Partners Team 8 P a g e