EGPS assists plan sponsors and TPAs with plan terminations, including processing more than 1,000 terminated participant distributions each year. Some of the terminations involve large numbers of participant distributions, others are small plans. Either way, the time required to gather the data, process the paperwork, assemble and mail the distribution packages puts a significant burden on the transaction team. EGPS turned to PenChecks for a simpler and more efficient way to perform these important plan termination requirements.
The Premier Level service greatly reduces EGPS’s administrative workload by simplifying the distribution process. EGPS provides the participant data and funding and PenChecks manages every step from benefit elections to payment processing. The Missing Participant IRA service makes it easy for EGPS to force out missing or non-responsive participants from the terminating plan, so they can legally shut down the plan in a timely manner.
Over the years, EGPS has added several more PenChecks distribution services to save time and allow staff to focus on higher-value client activities. These include Express Distributions, which process participant payments, tax withholding and remitting, and 1099-R and 945 forms. Others include Missing Participant Search services, Automatic Rollover IRAs for ongoing plans, and 1099-R filing as a stand-alone service. The participant searches and IRAs help EGPS pay out unclaimed accounts when participants are located or remove them from the plan according to Department of Labor regulations when they remain unresponsive.
Terminating plans is a complex, time-consuming endeavor. PenChecks Premier Distributions Service allows us to hand off many time-consuming administrative tasks so we can terminate the plan safely and efficiently. As long as we get the participant data and funding to PenChecks on time we can count on them processing the distributions in a timely manner.
Having PenChecks prepare the necessary paperwork and send out all the distribution packages is a huge time saver. Their Amplify portal makes it quick and easy to enter participant data. And the Missing Participant IRAs remove the company’s fiduciary responsibility by appropriately managing unclaimed participant accounts. PenChecks takes all that and more off our hands so we can focus on other plan termination requirements.
Carla Stall, Transaction Specialist
Economic Group Pension Services