WorkSmart Systems, Inc.

Darbi Buchanan (left) and Rebecca Moore (right)

PLANSPONSOR: How would you describe your company? What is its work or mission? Is there anything unique about its demographics?

WorkSmart Systems: As an IRS-certified Professional Employer Organization, WorkSmart has a mission to provide small to midsize businesses the opportunity to focus on what they do best—run their company. Besides payroll, we offer a quality, affordable benefit package, a robust human resources team and the opportunity to participate in our multiple employer plan. So while the client focuses on its business, we help take care of its employees.

PLANSPONSOR: Please cite any noteworthy initiatives you have taken in the past 24 to 36 months that have produced results to improve your plan, and describe the results.

WorkSmart Systems: In January 2023, we made a strategic leadership change by appointing a new director for our 401(k) team, one who brings 24 years of experience as a third-party administrator. Notably, this individual has been engaged with our plan since 2016 and possesses a deep understanding of the intricacies of our business and clientele. To further enhance our team’s capabilities, we also welcomed two additional members to our 401(k) team, allowing us to leverage fresh perspectives and expertise.

To improve our operational efficiency, we implemented a ticketing system designed to manage the high volume of inquiries we receive daily from co-sponsors of the plan and participants. This change has enabled us to address issues promptly, ensuring timely and effective communication.

Over the past two years, these enhancements have paved the way for the development of several new standard operating procedures. We have undertaken various initiatives that proactively engage our clients, allowing us to offer enhanced consulting services on plan design, testing concerns and participant education.

Some of our key accomplishments include:

• Resolving uncashed checks: We have successfully cleared out thousands of dollars in uncashed checks and addressed outstanding force-outs, thereby cleaning up the trust;
• Participant communication: We have prepared targeted communications to participants to remind them of the plan and its benefits. Additionally, we developed easy-to-follow enrollment instructions; and
• Enhanced education initiatives: We created informative spreadsheets that help participants understand critical topics, such as the impacts of different deferral strategies and maximizing the employer match.

PLANSPONSOR: Please explain the ongoing governance efforts of those involved with the plan meant to ensure its compliance and effective operation.

WorkSmart Systems: Our comprehensive approach to governance ensures that our plan remains compliant and operates effectively in support of our employees’ retirement goals.

We collaborate with a diverse team of experienced professionals, each with their area of expertise, to ensure that our plan adheres to the evolving requirements of ERISA. This team includes:

• An ERISA attorney, who provides guidance on compliance and regulatory matters;
• A financial adviser, who offers strategic investment advice and monitoring;
• An auditor, who conducts regular audits to ensure financial accuracy and regulatory compliance;
• A recordkeeper, who manages plan data and provides administrative support; and
• TPAs that assist with plan operations and compliance.

Additionally, our Director of 401(k) Services is a qualified plan administrator and qualified 401(k) administrator, as certified by the American Society of Pension Professionals & Actuaries, and team members are committed to continuous professional development, with several working toward obtaining their QKA credentials.

We recognize the importance of remaining current on changing legislation, best practices and industry trends. To this end, we engage with resources such as ASPPA, ERISApedia, PLANSPONSOR and John Hancock to stay informed about regulatory updates and industry developments. We also participate in ongoing continuing education and training programs to enhance our knowledge and expertise.

We leverage our software vendors to enhance plan procedures and reporting, ensuring that our plan operates efficiently and in compliance with regulatory requirements.

Our retirement benefits committee meets quarterly to:

• review plan investments and make informed decisions about future investment strategies;
• discuss regulatory changes and assess their impact on the plan;
• analyze industry trends and their potential effect on the plan; and
• converse about challenges faced by the plan and potential future issues that may arise.

PLANSPONSOR: What are you most proud of as it relates to your retirement plan offering?

WorkSmart Systems: When it comes to the MEP we offer clients, we are proud to provide them several flexible plan provisions that allow them to design a plan that suits them best. Our clients are unique and should not be forced into a cookie-cutter plan design.

PLANSPONSOR: What does winning Plan Sponsor of the Year mean to you and your employer?

WorkSmart Systems: We know the hard work the 401(k) team has put in over the years to maintain, promote and grow this plan. It’s been a group effort between WorkSmart, our financial adviser team, recordkeeper, Employee Retirement Income Security Act attorney, auditor and the TPA. Having those efforts externally recognized is so rewarding and shows the public we’ve built a strong team here at WorkSmart and with our partners.

This year, for our Plan Sponsor of the Year profiles, we are publishing Q&As based on the finalists’ applications and nominator comments. Responses are edited and may be paraphrased. In cases where the finalist self-nominated or, on its application, referred judges to the nomination for the answer, we have attributed those nominator answers to the plan sponsor.