The Pentegra Defined Benefit Plan for Financial Institutions
The Pentegra Defined Benefit Plan for Financial Institutions provides plan sponsors with all of the services needed to run a successful pension 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 UNIQUE FIDUCIARY ROLE
The Pentegra Defined Benefit 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.
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).
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.
SIMPLIFIED FAS 87 REPORTING
In addition, Pentegra’s multiple employer plan structure vastly simplifies FAS 87 reporting, and structure eliminates the need for dual reporting requirements, since plan sponsors need only recognize their actual pension contributions as the expense for FAS 87 disclosure purposes. Because these numbers are the same, accrued and prepaid pension expenses are also eliminated, so that you can report only what you actually pay for pension contributions as a Net Periodic Pension Contribution.
ACCOUNT MANAGEMENT SERVICES
- Dedicated Relationship Manager
- Dedicated Client Service Team
- Direct Access to Senior Staff
PLAN DESIGN & DOCUMENT SUPPORT
- Prototype plan documents
- Summary Plan Descriptions (SPDs)
- Plan qualification package
- Plan amendment and restatement services
- Plan design consulting
ADMINISTRATIVE & RECORDKEEPING SERVICES
- Enrollment processing
- Plan sponsor reports
- SAS 70 audit report
- QDROs
- Required minimum distribution notifications
- Termination processing
- Benefit calculations
- Benefit payment administration
- Documentation of Power of Attorney and guardian status for retirees
- Annual participant benefit statements
- Annual plan review
- Service guarantees
ACTUARIAL SERVICES
- Annual actuarial valuation report
- Development of minimum funding and contribution requirements
- Maximum allowable deduction and funding level recommendations
- Documentation of the basis for the actuarial reports
- Analysis and reconciliation of the present value of accumulated benefits in accordance with SFAS-35
- Calculation and reporting of Net Periodic Benefit Cost for the fiscal year
- Calculation of the PBGC premium payment due each year
- Preparation of Schedule A
- Preparation of FAS-87 and FAS-132 valuation results
- FAS 87 year-end disclosures
PLAN COMPLIANCE SERVICES
- Ongoing legislative and regulatory updates
- Top-heavy testing
- 415 limit testing
- 410(b) testing
- Preparation of Government filings
- IRS Form 5500 (including required schedules)
- Pension Benefit Guaranty Corporation filing
- Summary annual report
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
- Tax reporting (IRS Form 1099R)
PLAN EDUCATION AND COMMUNICATION
- Onsite retirement benefit meetings
- Customized enrollment kits
- Participant education materials
- Pentegra OnLine 24/7 web access
- Technical newsletters and plan sponsor updates