the ohio employee ownership center april 20 2007 basic relationship between the company and the tpa
Download
Skip this Video
Download Presentation
Florence V. Zabarsky Zabarsky & Associates, LLC (440) 572-4950 [email protected]

Loading in 2 Seconds...

play fullscreen
1 / 17

Florence V. Zabarsky Zabarsky & Associates, LLC (440) 572-4950 [email protected] - PowerPoint PPT Presentation


  • 149 Views
  • Uploaded on

The Ohio Employee Ownership Center April 20, 2007 Basic Relationship Between the Company and the TPA. Florence V. Zabarsky Zabarsky & Associates, LLC (440) 572-4950 [email protected]

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Florence V. Zabarsky Zabarsky & Associates, LLC (440) 572-4950 [email protected]' - benedict-kane


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the ohio employee ownership center april 20 2007 basic relationship between the company and the tpa

The Ohio Employee Ownership Center April 20, 2007Basic Relationship Between the Company and the TPA

Florence V. Zabarsky

Zabarsky & Associates, LLC

(440) 572-4950

[email protected]

slide2
A good relationship between the Company and the TPA is crucial to the effective and smooth operation of an ESOP, or any Retirement Plan
  • The TPA should be knowledgeable, but also personable and able to provide efficient service
  • The Company, or Plan Sponsor should be available to work with the TPA as needed to respond to any issues that arise
basic relationship between the company and the tpa
Basic Relationship Between the Company and the TPA
  • Service Agreement contents
  • Annual Data Request
  • Partnership between the TPA, Client and Trust Company
  • Preliminary Report
  • Communication of testing results and issues
  • Other TPA Functions
service agreement contents
Service Agreement Contents
  • A service agreement should be in place for each Client/TPA relationship
  • It should include a Schedule of Services, along with responsible party
  • Avoid functions that no one realizes they are responsible for
service agreement contents1
Service Agreement Contents

Routine TPA Duties:

  • Eligibility determination
  • Participant recordkeeping
  • Calculation/allocation of employer contribution
  • Calculation/allocation of forfeitures
  • Distribution processing
  • Compliance testing
service agreement contents2
Service Agreement Contents

Duties Rarely Handled By TPA:

  • Making any decisions related to the Plan
    • To avoid being considered a fiduciary, the TPA cannot make any decisions in regard to the Plan. This would include method of handling any process that a Plan would have a choice in
      • Could include areas of the Plan Documents, testing, etc.
  • TPAs normally do not issue Plan disbursements
annual data request
Annual Data Request
  • Employee (Census) Information
  • Company Information
  • ESOP Information
annual data request1
Annual Data Request

Employee (Census) Information

  • SSN, Name
  • Dates
    • Birth
    • Hire
    • Termination
    • Rehire history
  • Hours
  • Compensation
annual data request2
Annual Data Request

Employee (Census) Information

  • Any “other” contributions – 401(k), match, employer to another plan
  • Officers
  • Shareholders
  • Family Members
  • Pending QDROs
slide10
Company Information
  • Type of Company – C Corp, S Corp, etc.
  • Any mergers, acquisitions, etc.
annual data request3
Annual Data Request

ESOP Information

  • Plan Assets – including Checking/Trust accounts, any mutual funds, any other investments
  • Detail of ESOP loan payments made
  • Amendments to Plan Document or Loan Document
  • Plan Year-end Stock Valuation
  • Fidelity bond information
slide12
Working with Client and Trust Company

During the year-end allocation process it is important to have a representative available at both the client and the Trust Company, for any issues or questions that arise

slide13
Preliminary Report
  • Contents
  • Discussion in regard to
slide14
Communicating testing results and issues
  • Options and timing
  • Section 404 – Deductibility
  • Section 410b - Coverage
  • Section 415 – Annual Additions
  • Section 416 – Top Heavy
slide16
Other TPA Functions
  • Notification to Client of distributions
  • R.M.D.s
  • Diversification
    • Participants Eligible for Notification
    • Calculation of available amount
  • Annual Plan Sponsor Meeting
  • Employee Meetings
slide17
Sample Timeline
  • December 1  TPA sends a year-end data request to the Company
    • This should include an employee census request, as well as detail of all items needed
  • February 15  Company should remit all requested items to the TPA
  • March 15  TPA Delivers preliminary report to the client
  • March 31  Appraiser completes year-end stock valuation
  • March 31  Company reviews/gives approval of preliminary report
  • April 15 -30  TPA delivers completed final report, participant statements, final testing and Form 5500 (if unaudited Plan) to client
ad