Company Situation:
An environmental consulting firm headquartered in Bedford, New Hampshire, Normandeau Associates became an ESOP company in 2000 and has been 100% employee owned since 2012. With 250 participants in the ESOP, the company struggled to process the annual ESOP payments in a timely and efficient manner. Normandeau’s previous ESOP administrator did not have an efficient check distribution and reporting process, which resulted in a lengthy, cumbersome process that made it difficult to deliver the payments on time. Needing a better solution, Normandeau Vice President and CFO John Mokas wanted to identify alternatives. That’s when he learned about PenChecks’ seamless ESOP payment processing service and decided to insert PenChecks into the last phase of collecting the participant decisions and processing payments.
Seamless turnkey solutions.
PenChecks Premier Distribution Service provides Normandeau with a fast, flexible, and timely solution by handing all ESOP payments and relevant reporting. Now, Normandeau only has to determine the amount needed for funding, verify the accuracy of the data sent from their ESOP administrator TPA, and fund the payments. PenChecks does the rest, including collecting and processing benefit elections, preparing the checks, mailing them to the participants, and sending the tax withholdings to the government. This process applies whether it is for processing Separation of Service (i.e., retirement or termination), In-Service distributions or Diversification payments. PenChecks handles these requests in the same efficient manner, providing Normandeau greater flexibility to offer employees a full set of distribution options.
250 participants
Fast, flexible & timely
Results:
With PenChecks’ streamlined payment processing, Normandeau’s ESOP payments arrive on time. Since PenChecks makes the process easy, Normandeau hasn’t needed to contact PenChecks tech support to resolve any issues. Their staff appreciates no longer having to perform time-consuming manual ESOP distribution tasks, and using PenChecks’ service saves the company a significant amount every year.
Working with PenChecks is easy, quick and efficient, and it gives me peace of mind knowing this important task is being conducted by people with years of experience. We had a problem and they fixed it. I rate them a 9.5 for quality of service only because I never give a 10.
John Mokas, Vice President and CFO
Normandeau Associates, Inc.