Investment Options

The PenServ platform offers a selection of investment options designed to assist the investment professional in selecting the right program for the client.  Various platforms designed to accommodate the plan include open-architecture mutual funds platforms, annuity platforms and managed accounts.  The flexibility of the program also permits plans to select a combination of products specifically designed to suite the employer’s needs.

Platforms include:

• PenServ Open-Architecture.  A daily open-architecture mutual fund platform that allows the investment professional to choose from among more than 2,500 mutual funds offered on through our platform.  Because of the flexibility incorporated into the program, we are able to include mutual funds that may not be daily traded on our system but are available through special trading arrangements.

• Charles Schwab.  PenServ supports advisors and brokers who use utilize the features offered through the Schwab platform.  The account is available to the broker through that platform and accounts are maintained.

• Fidelity.  For advisors who maintain their primary relationship with Fidelity, we maintain the platform and accounts linked to the broker ID.  Accounts are established on behalf of the advisor who then manages the Plan through that system.

• Various Annuity Products.  We maintain a relationship with a number of financial providers that offer annuity products and serve as recordkeeper for the Plan.  PenServ provides administration services that include plan documents, compliance testing and other administrative services for these options.  We maintain a relationship with a number of financial providers that offer annuity products and serve as recordkeeper for the Plan.  PenServ provides administration services that include plan documents, compliance testing and other administrative services for these options.
  
  

PenServ is a trusted name in the retirement plan industry.  As a firm, our compliance and technical services and consultants are used by many investment providers throughout the country.  Our recordkeeping and administrative services are not designed on a template, but rather on the needs of the individual plan.  When selecting a recordkeeper for your client, ask of the following are included as part of the standard services:

• Are Salary Deferral Limits monitored throughout the year?
• Does the recordkeeping system prevent deferrals from ineligible employees?
• Is the employer advised when new employees are eligible to enter the plan?
• Are reminders sent to employers advising that payrolls are due on a specific date?
• Is a reminder sent if a payroll is not received on a timely basis?
• Is the employer advised when a loan will be repaid?
• Are employees taking a hardship deferral from the Plan
• Is the employer notified when hardship recipients are permitted tore-enter the Plan?
• Is the employer advised when to enroll eligible rehires in the Plan?
• Are various testing cures offered to the employer?
• Are eligible employees cashed out of the Plan?
• Are employees automatically advised when distributions become payable?

Preparing a proposal for your client is part of our Conversion Service.  Our design consultants can assist you and your client to determine if the existing plan design is most suited for the goals of the employer.  We can assist you in previewing the investments and determining any restrictions that may apply to the proposed funds.    To receive a proposal for a new Plan, contact a marketing representative and one of our consultants will assist you to gather the information necessary to prepare the quote.

To contact a Design Consultant:

Phone  1-800-849-4001 or 1-803-822-1804

Email    marketing@penserv.com

Request for Proposal Form

At PenServ we maintain a group of consultants that assist advisors who utilize our platform to provide recordkeeping services for mutual clients.  If you have a technical question regarding the plan or need assistance with planning or

Establishing the Plan

Is the financial advisor directly involved in the enrollment of the Plan?

Yes. The financial advisor is generally responsible for assisting is the communication of investment options to plan participants. Employees may be confused in the proper selection of funds and the financial advisor can provide the valuable guidance to the employee.

What investments are appropriate in a retirement Plan?

Generally, salary deferral arrangements such as 401(k) and 403(b) plans invest in mutual funds, annuity products and similar vehicles that hold a number of different individual investment products. These products make it easy for employees to diversify their retirement plan investments.

How does an allocation model work?

An allocation model is a pre-selected group of investments designed to provide employees an option that suites their particular risk tolerance. The models are “packaged” to meet the investment goals of participants who prefer to delegate the selection of a portfolio mix to an investment professional. Periodically, the investments in the plan are rebalanced to bring the individual investments within the model back to the intended ratios.

Models are increasingly popular with participants who are uncomfortable selecting investments for their retirement plan.

How many funds should be offered to employees?

There is no correct answer for this question; however, it is our opinion that a well managed group of funds that provide adequate ability to diversify a portfolio is the best alternative. Many plans offer so many funds that employees are unable to determine the best selection for their account.
 
The value of plan assets is also a consideration. Many mutual funds apply additional charges if plans do not meet certain minimum investment requirements.