Once you have made the decision to make BSGI the third party administrator of your plan, there are several steps that need to be done before the plan can be up and running. Essentially, BSGI has two forms of new business that define the installation process:
A plan that has already been established and in operation but has made the decision to change TPAs. The plan may also be changing investment providers which would also involve a conversion of assets.
A brand new plan that has no assets.
While there are many differences between the two forms of new business, there are several constants that exist in their installation procedure. BSGI requires two items in order to initiate our installation procedures: The signed fee schedule and service agreement from the BSGI Portal. Once these items are received, BSGI will begin work on the main building block of the plan: the plan document.
The document is essentially the heart of the plan as it defines how the plan is operated and outlines the provisions of the plan. In fact, on a start-up plan, the document must be signed by the trustee of the plan before any contributions can be made.
We have the ability to provide several types of plan documents:
- Prototype Non Standardized 401(k)
- Prototype Non Standardized Money Purchase
- Prototype Non Standardized Target Benefit
- Prototype Standardized 401(k)
- Prototype Standardized Money Purchase
- Volume Submitter Profit Sharing
- Volume Submitter 401(k)
- Volume Submitter 401(k) Prototype format
- Defined Benefit Pension Plan
- Cash Balance Plan
- Section 403(b) Plan (Full Scope)
- Section 403(b) Limited Scope
As of 7/1/2014, any new business received will automatically have their plans restated for PPA at no additional cost as a courtesy during the installation process.
Why must my plan document be restated for PPA?
Legislation surrounding retirement plans is constantly changing. To keep a plan in compliance, preapproved plans must be rewritten and readopted by the employer approximately every six years to add in language with respect to any new rules and regulations that have been enacted since the previous restatement. We are currently in the midst of a cycle that has been named the PPA cycle, for the Pension Protection Act of 2006. The two year window for restating PPA documents for any new or existing adopting employer is from May 1, 2014-April 30, 2016.
Some highlights of PPA include:
- Automatic enrollment provisions
- Automatic enrollment opt-out
- Funding notifications
- Investment advice rules
- Contribution limits
- Qualified Default Investment Arrangements
BSGI will help guide you through this restatement process and ensure your document is up to date and that your plan continues to maintain its tax-exempt status.
All new clients will also receive a login and password to our plan management portal. The login will allow you to have a secure internet based web site for all plan related documents. Using the plan management portal, you can access your plan documents, update contact information, see plan specifications, upload annual data, pull annual valuation or compliance testing reports, communicate with your assigned pension consultant, and obtain copies of Form 5500s.
Once the client has received and signed all legal documents pertaining to the plan, they have officially established their plan. It is at this point that the plan installation is complete and the plan administration begins. Please go to the plan administration section for more information.