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Maintaining participant records on a daily basis requires sophisticated systems that are able to execute trades, process transactions and update accounts on a timely basis. The PenServ system processes data on a transaction-day basis and displays information to the participant web site. The site is designed to provide detailed transactions, pending items and the ability to track web instructions entered by the participant.

PenServ offers a complete menu of Daily Services:

  • Secure systems to protect participant information
  • Daily account transactions
  • Automated daily payroll processing
  • Daily update of plan values
  • Notification of scheduled payrolls due
  • English and Spanish Internet and Voice System
  • Current Rate of Return and fund information
  • Fund prospectuses
  • On-line Enrollment
  • Paperless loan processing
  • Automated distributions
  • On-line standard or customized reports for Plan Sponsor and Participants
  • Asset allocation modeling capability
  • Customizable Plan Sponsor Web Site
  • Quarterly Plan Sponsor Reports
  • Quarterly Participant Statements mailed or posted to web
  • Special Audit Reporting package
  • Semi-annual discrimination testing reports
  • Annual management and valuation report
  • Signature-ready IRS Form 5500
  • Summary annual report
  • Employer contribution calculations
  • Toll-Free Participant Service Center
  • Dedicated Relationship Team

A Section 125 Plan is one of the most beneficial programs for employees today. It is also one of the most underutilized programs because employees may not understand the plan and how it can be effectively used to pay expenses on a pre-tax basis. A well planned, well communicated program can provide both cost savings and increased employee satisfaction. Prompt payment of claims, a service center to assist with complex questions regarding Cafeteria Plan benefits accompanied by the latest in technology is the basis for the PenServ125 model.

PenServ Daily125 includes:

  • Plan Design Services
  • Implementation or Conversion Planning
  • Educational Materials
  • Enrollment Meetings
  • On-Line Enrollment
  • 24/7 Online Participant Access
  • On-Line Resources for Plan Participants
  • Direct deposit of payments
  • Debit card convenience available
  • Fast payment of claims
  • Full Compliance Testing
  • Signature-Ready Form 5500 (where required)
  • Web Site integrated with other employee plans
  • Single input for multiple plan types
  • Knowledgeable service professionals to assist with claims
  • All participant information protected by secure data transfer

When a plan is received by PenServ, the plan provisions are outlined and reviewed by our Consulting Division. The review includes a comparison of the plan provisions to the most current regulations to ensure the program is in compliance with all IRS and DOL regulations. This group also considers the employer census, last valuation and make-up of the management group to ensure the plan provisions meet the goals outlined by the employer. In most cases today, IRS approved prototype or volume submitter documents are used to qualify a plan. However, if your plan requires an individually designed document, our Consulting Group can assist you with the design and submission to IRS.

PenServ Document Services and Plan Design Services Include:

  • Review of existing document and forms
  • Offer Assistance with Plan Design Features that may be advantageous to the Employer
  • Comparison of documents to administrative practices
  • Recommendation for updates (if necessary)
  • Preparation of Plan Document
  • Summary Plan Description
  • Administrative Forms
  • Distribution of SPD and Plan Forms to employer web site
  • Submission to IRS (if required)

IRS regulations generally provide that procedures outlined in the document are not followed or if the sponsor fails to follow the required qualification procedures, the plan may be disqualified. Since the implication of disqualification is so severe, IRS has developed a program that allows employers to avoid the tax consequences of such action. The PenServ Consulting Group is experienced in the correction of plan violations and the correction process established by the applicable Revenue Procedures. If your program has experienced a disqualifying event or if your document is out of compliance one of our PenServ Consultants will be able to provide guidance on the easiest way to bring your plan into compliance. EPCRS Submissions

PenServ Compliance Services Include:

  • Review and evaluation of the compliance issues
  • Determination of procedure to follow
  • Explanation of the process
  • Correcting the defect, if required
  • Preparation and submission of EPCRS filing

PenServ can prepare EPCRS Submissions for All Employer Plans including:

  • SEPs/SARSEPs
  • SIMPLE IRAs
  • 403(b) plans
  • Qualified Plans including 401(k)s
  • 457(b) plans for governmental entities

IRS has announced an increase in the audit activity and, in fact, identified those plans most likely to be selected. This could mean fines and penalties if a defect is identified in the operation of the plan or the plan document. At PenServ, we recommend each employer conduct an annual fiduciary audit of the program to identify any unnecessary risks involved in the plan’s policies and procedures or the employer’s internal procedures. The PenServ Consulting Group will assist you in identifying the responsibilities that may fall on your officers, owners, or directors, and prepare updated plan documentation and processes to reduce the exposure to these individuals.

PenServ Fiduciary Audit Services Include:

  • Examination of employer internal controls
  • Evaluation of plan policies and procedures
  • Review of the investment program
  • Identify existing company fiduciaries
  • Pinpoint any areas of concern
  • Prepare audit report and recommendations
  • Draft new materials, checklists and/or internal controls
  • Update and revise annual review