Through its data interface with SunGard (see SunGard, ProNvest Unveil Automatic Rollover Service ), ProNvest is able to assume fiduciary responsibility on behalf of plan sponsors and to coordinate directly with plan administrators to identify participants eligible for mandatory rollover, as well as coordinate all data transfer and notification requirements.
Additionally, ProNvest says it now will utilize the technology platforms of Wealth Management Systems Inc., a rollover solutions provider, to facilitate the IRA account opening process and effect the rollover of qualified plan assets into ERISA compliant IRA accounts (see WMSI: Rollover Services Offered at No Cost ).
Using recordkeeping interface protocols, ProNvest will receive notification of the termination, document the balance and source of all of the involved funds, and identify eligible accounts to roll over, easing recordkeeper’s responsibilities, according to the firm. In this capacity, ProNvest will be able to provide the information necessary to open the IRA account and to facilitate the IRA account opening process working with Wealth Management Systems Inc.
This enhanced program significantly reduces the administrative burdens of plan sponsors and plan administrators while providing access to a turnkey mandatory rollover solution, according to ProNvest. Come March 28, plans with mandatory distribution provisions will have to have something in place to deal with distributions of more than $1,000 for which distribution instructions aren’t provided (See IRS, Treasury Issue Automatic Rollover Guidance ).
Within the ProNvest program, there is no costfor the plan administrator, plan sponsor, or the participant to either transfer or open the account.
You can read more about the ProNvest program at http://www.pronvest.com/