When Zero is a Good Thing

Overview

After an initial compliance test, a 313‑participant plan was set to forfeit $474,732. This amount would have been forfeited as a result of communicating an incorrect matching formula and other census data errors.

After our team researched and resolved the errors, a grand total of zero was forfeited.

A similar situation unfolded in the case of another client. In this case, compliance testing appeared to result in refunds of over $51,000. Our experience told us that the plan’s compensation seemed suspect.

How Pentegra Helps

After reviewing the situation with the client, it turned out that nearly every compensation number reported on the census data was incorrect. Once the census data was corrected and we re‑ran the testing, refunds went from nearly $500,000 to $0.

Pentegra’s 3(16) oversight can deliver compliance confidence for your clients.

Pentegra

Founded in 1943 by the Federal Home Loan Bank System, Pentegra has been an industry leader in providing full service retirement plan solutions to banks nationwide. Pentegra offers a full spectrum of qualified retirement programs. With every retirement solution, we bring the same focus—relieving banks of the fiduciary and administrative burdens that come with sponsoring a retirement plan. Today, Pentegra administers/manages over 50,000 retirement plans and more than $13 billion in retirement plan assets.

When Zero is a Good Thing

Overview

How Pentegra Helps

In Depth

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