The Pentegra Defined Contribution Plan for financial institutions
The Pentegra Defined Contribution Plan for Financial Institutions provides plan sponsors with all of the services needed to run a successful 401(k) program—plan design and document support, administrative and actuarial services, investment management and trustee services and ongoing consulting and education—and the added value of our unique fiduciary role.
As a multiple employer program, participating financial institutions enjoy valuable economies of scale. With over $4 billion in assets under management, we are able to leverage the buying power of hundreds of organizations to offer our clients numerous economies of scale, producing tangible benefits for customers in the form of lower retirement program costs and investment management fees. Only a single plan audit, 5500 filing and plan document are required, resulting in considerable cost savings for members.
Our client list of more than 500 financial institutions includes the Independent Community Bankers of America (ICBA), the Federal Home Loan Bank System and America's Community Bankers (ACB).
OUR UNIQUE FIDUCIARY ROLE
The Pentegra Defined Contribution Plan for Financial Institutions offers a distinct advantage—the opportunity to completely outsource primary fiduciary responsibility for the management of your retirement program—something no other provider that we know of offers.
Pentegra serves as the ERISA-Named Plan Administrator and principal fiduciary for the program. Our President and Board of Directors—comprised of our clients—assume these responsibilities for our clients, prudently monitoring and documenting all decisions affecting your plan and its investments. As the fiduciary for the Plan, our Board of Directors must approve our fee structure and investment policy. As a Pentegra client, you’ll benefit from the due diligence that we perform to ensure that your plan operates in the best interests of your participants.
ACCOUNT MANAGEMENT SERVICES
- Dedicated relationship manager
- Dedicated Client Service team
- Direct access to Senior Staff
PLAN DESIGN & DOCUMENT SUPPORT
- Prototype or custom designed plan documents
- Summary Plan Descriptions (SPDs)
- Plan qualification package
- Plan amendment and restatement services
- Plan design consulting
ADMINISTRATIVE SERVICES
- Daily recordkeeping services, including valuation of plan participant accounts and daily processing of contributions, transfers, distributions and loans
- Flexible reporting and electronic data submission
- Pentegra OnLine 24/7 plan sponsor and participant account access, transaction and reporting capabilities
- Quarterly Statements mailed to participant’s home
- Annual combined db/dc statements—unique in the retirement plan industry
- Qualified Domestic Relations Orders (QDRO’s)
- Required minimum distribution notifications
- Forfeiture allocations
- Annual Plan Audit
- Annual SAS 70 Audit
- Annual plan review
- Stringent quality control standards
- Written and guaranteed service standards
PLAN COMPLIANCE
- Ongoing legislative and regulatory updates
- ACP/ADP testing
- Top-heavy testing
- 415 limit testing
- 402(g) limit testing
- 410(b) testing
- Preparation of Government filings
- IRS Form 5500 and 5300
- Summary Annual Report (SAR)
TRUSTEE SERVICES
- Custody and investment of plan assets
- Accurate and timely reporting of contributions, sales and purchases, withdrawals and dividend and interest income
- Participant-distribution checks and periodic benefit payments, including lump sum distributions
- Preparation of principal and income statements
- Certified plan financial information for plan auditors
- State income tax withholding services for mandatory states
- Tax reporting (IRS Form 1099R)
INVESTMENT MANAGEMENT
- Collective trust institutionally-managed index platform from State Street Global Advisors
- Broadly diversified options
- Low-cost investment platform
- Self directed brokerage account
PLAN EDUCATION AND COMMUNICATION
- Pentegra OnLine 24/7 plan sponsor and participant account access and transaction capabilities
- Onsite education meetings generate 90%-100% participation rates
- Customized enrollment kits
- Participant education materials
- Financial Planning Tools
- Technical newsletters and plan sponsor updates