A news release said that through the new offering, plan sponsors terminating plans can reconnect with as many missing participants as possible and then roll over participant accounts into IRAs for missing participants as necessary.
According to the announcement, sponsors who are interested in this new solution adopt an automated safe harbor IRA rollover process as a plan provision. Applicable participants are then notified, and in the cases where an alternative investment decision is not selected, Keane works with WMSI to open an IRA on the participant’s behalf.
WMSI gives customers access to a variety of IRA providers, reduces administrative costs, provides paperless transaction processing, and gives TPAs and plan sponsors fund activity reports.
“The agreement between WMSI and Keane is an important step forward in providing a comprehensive plan termination process for plan sponsors,” said John Geli, WMSI CEO, in the announcement.
Fellow rollover service provider RolloverSystems Inc. announced in mid-January that it had published a “best practices” guide for plan sponsors who are contemplating a 401(k) plan termination (See RSI Publishes Guide for Those Looking for an Exit Strategy ).