Products June 23, 2014
Small Plans Have More Opportunities for 3(16) Service
June 23, 2014 (PLANSPONSOR.com) - Transamerica offers the Retirement Plan Exchange,
designed to reduce administrative burdens on plan sponsors.
Reported by Lee Barney
It
covers a wide range of tasks, including developing an investment policy
statement, selecting and monitoring investments, filing Form 5500 with the
Department of Labor and other regulatory reports, non-discrimination testing,
contribution limits tracking, distributions and hardship requests.
Additionally, the Exchange automatically enrolls participants in the plan at a
6% contribution rate with automatic escalations of 2% a year up to 10%.
Transamerica serves as recordkeeper for the
Retirement Plan Exchange, while 3(21) and 3(38) fiduciary and 3(16) administrator services are handled
by independent firms.
More than one-quarter of small businesses do not offer a 401(k) or other defined contribution plan to their employees, Transamerica notes. “Expanding retirement plan coverage is an important step in improving American workers’ ability to retire securely, and the benefits of the Retirement Plan Exchange can help,” Kais says.
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