cpparms Compliance System

Transcription

1 cpparms Compliance System The Best Solution for 401(k) Compliance Testing

2 - 2 - Contents Introduction What is cpparms? What Will cpparms Do For Your Organization? Why Do You Need cpparms? Full Range of Outsourcing Compliance Testing Options System Components Employee Testing Projected Results Year End Results Reports Utilities System Reports List of System Reports Selected Sample Reports Company Information Who is Integrated Benefit Systems, Inc. (IBS) Contact Information 3162 Johnson Ferry Road Suite 260 #901 Marietta, GA Phone: (770) Sales: (770) info@cpparms.com

3 - 3 - Introduction What is cpparms? cpparms is a state-of-the-art, 32 bit, Windows XP/2000/NT/98 software tool for defined contribution plans that ensures compliance with legislative and IRS regulatory requirements. The system is available in either a Client/Server or Single User edition. It is a complete and fully automated system that utilizes a powerful relational database to perform all of the calculations and tasks required by the IRS in the areas of: IRC 401(k)/(m) ADP and ACP Nondiscrimination Testing IRC 410(b) Ratio Percentage Minimum Coverage Testing IRC 414(q) Highly Compensated Employee Determination IRC 414(s) Nondiscriminatory Compensation Testing IRC 415(c) Annual Additions Limitation Testing IRC 416 Top Heavy Rules Testing IRC 414(v) Catch-up Contribution Processing What Can cpparms Do For Your Organization? cpparms is the only high-quality, low-cost, total solution to qualified defined contribution plan compliance. The system is complete, efficient and benefits your organization in the following ways: Increases the quality and accuracy of the compliance services provided to your clients. Reduces the cost, time and administrative resources required to provide these services. Eliminates the need for error-prone, manual calculations and spreadsheets. All testing functions and IRS approved test failure correction methods are automated. Enhances and differentiates your services with extensive, value-added, problem solving capabilities that are not available with other tools. Testing for most plans can be completed in seconds, not hours or days. Increases revenue and profit opportunities. Improves client satisfaction.

4 - 4 - Introduction Why Do You Need cpparms? In response to market demands, IBS designed cpparms to provide cost effective, creative solutions to all compliance problems faced by service providers and plan sponsors alike. The only system that fully automates all testing processes. Comprehensive year-end testing tools. Mid-year testing accurately predicts year-end test results at any time during the year. Fully integrated Catch-up processing for statutory, plan and ADP/ACP limits. Determines Highly Compensated Employees using both the standard and calendar year election methods. Ratio Percentage and nondiscriminatory Compensation Testing performed as part of ADP/ACP process. Combines all plans for Annual Additions Testing. Combines all plans and distribution history for Top Heavy Testing. Applies the IRS Family Aggregation rules, for testing prior to SBJPA. Test Collectively Bargained (CBU) employees separately from non-cbu employees. The only system that fully automates all test failure correction processes. Applies IRS "borrowing/shifting" rule. Failure to take advantage of this provision can result in unnecessary contribution rate restrictions and refunds to HCEs. Contribution rate limit modeling. Age and Service exclusion processing. Full complement of QNEC and QMAC allocations. Refunds with allocable investment earnings. Forfeiture management. Immediate, on-line feedback of corrective action's impact on HCEs.

5 - 5 - Introduction The only system that fully automates all of these reporting needs. Complete data-exception, audit, summary and detail working reports. Documentation of each plan's compliance with IRS rules. Full audit trail and control totals. High quality, easy-to-use reports designed for plan sponsors by plan sponsors. Multiple sort sequences, inclusion criteria and page range selection. Report package facility allows for user defined report packages for one-step distribution. All reports can be viewed online, sent to any printer on your network, or electronically sent to your clients. Extensive analysis of plan performance to improve plan participation and contribution levels. Optional, user-defined custom reports and queries can be easily created using Microsoft Access, Microsoft Excel, Crystal Reports or any ODBC compliant reporting tool. cpparms easily integrates with your existing processes and systems. Powerful Flexible Data Import and Export. Accepts ASCII (text) data files and Excel spreadsheets through userdefined importing. Quickly and easily map data input from payroll, recordkeeping and other systems. Combine employee data records from as many systems as needed. Code Set functionality easily translates codes from other systems through user-defined mapping. Record inclusion and exclusion capabilities, including a flexible query tool, saves time and resources. User-defined data exporting allows the sharing of data with recordkeeping, payroll, personnel and other systems, including future rate restrictions and year-end refunds. Fully user controlled and easy to use.

6 - 6 - Introduction Data Checking. Import process edits data for integrity. File Scan applies logical edits to ensure that testing data is both complete and accurate. Error Control Facility (ECF) tracks each data error and warning and provides access for correction through the click of a button. Data Security. Specialized plan level Backup and Restore functions. User ID and password security integrated with Windows XP/2000/NT/98. Plan Specific support. Powerful relational database warehouses an unlimited number of plans of any size. Supports each plan's unique provisions relative to the testing and reporting process. Sophisticated projection methods for compensation and contribution processing, including extensive matching and employer contribution allocation formulae. Provides comprehensive testing, correction and reporting options. No other system enables you to complete the entire compliance process faster. Intuitive, notebook style, graphical user interface (GUI) makes system navigation simple and straight-forward. Context-sensitive help and on-line documentation provide instruction and answer any questions that arise. Powerful, 32-bit relational database architecture allows most plan s compliance testing to be completed in seconds or minutes... not hours or days.

7 - 7 - Introduction Full Outsourcing Option for Compliance Testing Services Full Range of Testing Options Choose Your Tests: 401(k)/(m) ADP and ACP 415(c) Annual Additions Limitations 410(b) Ratio Percentage 414(s) Compensation Test 416 Top Heavy Analysis Highly Compensated Employee Determination Eligibility Determination 402(g) Deferral Ceiling 401(a)(17) Compensation Ceiling Fully-Automated Catch-up Calculations Choose the Testing Frequency You Need: Monthly Quarterly Semi-Annually Annually Other IBS provides 401(k) Defined Contribution Compliance Testing and Reporting Services for plans ranging in size from as few as ten employees to more than 200,000 employees. Service Providers may choose to: Fully outsource all their plans testing to IBS. Selectively outsource plans during peak testing periods. Retain IBS to provide testing services for complex plans, large plans, or plans with problematic data. Ad hoc testing, review and audit. Simplified, Fast, Accurate & Highly Affordable Services Electronic Data Receipt, Testing & Reporting All data is exchanged electronically and securely in your existing formats (ASCII Text Files, Excel Spreadsheets, Access Databases, etc.) and layouts. Data is reviewed by an automated data edit scan process to insure complete and accurate data is used to perform the tests. Data correction is greatly simplified with our advanced data correction facility.

8 - 8 - Introduction Testing Completed On Time Final test results are ready in five days or less from receipt of final data corrections. Report packages can be customized to meet your needs. Affordable Our experienced staff, using the fully-automated, state-of-the-art cpparms Compliance Testing System, can complete your compliance tests efficiently at a very affordable price. A Proven Solution IBS has performed testing for many of the largest 401(k) plans in the country! cpparms is the tool which enables IBS to provide complete, timely and costeffective Compliance Testing and Reporting Services.

9 - 9 - System Components Employee Ordinarily, employee data is loaded into cpparms via the Flexible Import Facility. However, you may also enter employee data manually. You can add employees or correct employee information through the Employee Subsystem. This subsystem also provides for the viewing of all employee data used for testing. Enter special paid employee groups Add employees or correct employee data Inquire on all employee data Error Correction Facility (ECF) to ease correcting employee information Error Correction Facility The Error Correction Facility (ECF) is a special feature of cpparms that tracks errors for each data field and provides an automated way to easily access and correct data problems. The ECF window displays the error/warning messages found during the File Scan process. This direct navigation to each data error or warning greatly reduces the time and effort needed to correct data.

10 System Components Testing The Testing Subsystem allows you to select the data preparation and testing processes you wish to run. Testing processes include the following: Process Compensation Project amounts to plan year end; Impose Statutory Limits Determine Highly Compensated Group Process Contributions Project amounts to plan year end; Test for Plan and 402(g) Limits; Perform Catch-up Calculations Perform Annual Additions Testing Calculate Excess Amounts; Perform Catchup Calculations Perform ADP/ACP Testing Perform Additional Testing Top Heavy; Nondiscriminatory Compensation; Minimum Coverage Ratio Percentage

11 System Components The Settings pushbuttons to the right of each Testing process, allows you to select specific calculation parameters for each plan. For example, the Project Compensation Setting dialog lets you choose the method for projecting each compensation type (Pro Rata or Base Pay) as well as the compensation period (Full Year or Eligible Period). You can override system calculated compensation projection amounts and enter your own values for individuals, groups or all employees. These plan specific processes need only be entered once for a plan and they can be easily changed to model the best fit results for a client.

12 System Components Projected Results This Projected Testing Subsystem section is used to calculate limits on the HCE's contribution rates to ensure plan compliance. You can have the system calculate the limits or you can take control and determine the limits yourself. You can also use the system to determine the amount to increase previously restricted contribution limits should the NHCE contribution levels increase. Review Projected ADP/ACP Test Results Model Projected Contribution Rate Limits Model impact of year-end QNEC/QMAC allocations

13 System Components Impact of Limits to Pass Tests Should limits be imposed in order to pass the projected tests, the impact on the highly compensated employees is identified, both in the aggregate and at the employee detail level.

14 System Components Year-end Results This subsystem is used to calculate Year-end Test Results and to model all IRS approved correction methods. Review Year-end ADP/ACP Test Results Determine Excess Contributions and Excess Aggregate Contributions Implement desired corrective actions (Refunds, and QNECs/QMACs) Confirm compliance and impact of corrections Special Modeling Capabilities The correction features of this subsystem allow you to implement any combination of best fit solutions (e.g., partial QNEC combined with Refunds). A full complement of additional QNEC and QMAC corrective allocations are available. Refund processing includes comprehensive forfeiture management; catch-up reclassification; account refund hierarchy; calculation of investment income; and Gap Period income.

15 System Components Reports The Reports Subsystem provides over 40 pre-designed reports. All reports were designed by our clients for their clients. Ad hoc reporting can be easily created with any ODBC compliant reporting tool (i.e. Microsoft Access, Microsoft Excel, Crystal Reports, etc.) Complete data exception, audit and detail working reports are provided. General Employee and Totals Information Summary and Detailed Testing Results Detailed Corrective Action Reports Plan Performance Analysis Tools Report Selection The Reports subsystem lets you select data validation, control, test, correction, and analysis reports. Each report, where applicable, has a Print Order, which allows you set the sort sequence, and an Employee Selection, which allows you to choose which employee group(s) to display on the report. Also, you can print an entire report, a single page, a range of pages or totals only. Report output can be viewed immediately, sent to a local or network printer, or created as a PDF file directed to any local or network device for electronic forwarding. Report Package The Report Package feature allows you to print multiple reports with a single selection. For example, you could define a different set of reports to be sent to clients whose plans fail versus those whose plans pass the compliance tests.

16 System Components Utilities This subsystem provides a variety of control processes to simplify data transfer and to ensure data and plan validity and security. Flexible Data Import and Export Front-end data validation for integrity and completeness Specialized backup and restore processing Specialized Utilities The Utilities subsystem provides you with the ability to import data from as many sources as needed to complete the testing. The import process is totally user controlled. This completely eliminates the need for any special programming for client specific data. The export allows you to share data and test results with recordkeeping, payroll, personnel and other systems and includes a query function. The Backup and Restore functions allow you to save (archive) all information related to a plan s test, including the results. The File Scan applies logical edits to ensure that data used for testing is both complete and accurate.

17 System Reports List of System Reports Data Entry and Control Reports Import/Export Definitions Import Critical Errors Log and Edit /Warnings Analysis Reports General Reports Employee Basic Data Information Employee Census and Status Highly Compensated Employee Information Control Totals Expanded and Summary Employer Contribution / Forfeiture Allocation Testing Reports Year-To-Date and Projected ADP/ACP Test Results Summaries Year-To-Date and Projected ADP/ACP Test Detail Reports IRC 415(c) Annual Additions Detail Top Heavy Analysis Summary and Details 410(b) Ratio Percentage Testing Form 5500 Data Summary and Details 414(s) Compensation Testing Summary and Details Catch-up Contributions Correction Reports Future Contributions Limits Excess Contributions; Excess Aggregate Contributions; ADP / ACP Refunds Qualified Nonelective Contributions (QNEC) Qualified Matching Contributions (QMAC) Analysis Reports Year-To-Date ADP/ACP Results Projected ADP/ACP Results Elected Contribution Rates Participation Levels Participation and Contribution Summary

18 System Reports Report Samples (Use Zoom control on your viewer to enlarge sample reports) Year End Test Results Summary Highly Compensated Employees

19 System Reports Report Samples (Use Zoom control on your viewer to enlarge sample reports) Year End ADP/ACP Refunds Catch-up Contributions

20 System Reports Report Samples (Use Zoom control on your viewer to enlarge sample reports) 410(b) Minimum Coverage Detail Participation / Contribution Summary Analysis

21 Company Information Who Is Integrated Benefit Systems (IBS)? Integrated Benefits Systems, Inc. (IBS) was founded in 1993 as an employee benefits software and consulting firm dedicated to providing creative, value-added solutions to retirement plan administration and compliance concerns through state-of-the-art systems and outsourcing services. IBS working in conjunction with a major fund manager, life insurance company, and bank, designed and developed cpparms Compliance System. In July of 1995, after extensive 1994 year-end and st- and 2nd-quarter controlled testing, IBS began marketing cpparms. Today, many major service providers and benefits consulting firms use cpparms to provide quality compliance services to their clients. Since its inception IBS has been dedicated to providing the most complete, cost effective, and highest quality compliance system, consulting and outsource services to its clients.

22 Contact Information 3162 Johnson Ferry Road Suite 260 #901 Marietta, GA Phone: (770) Sales: (770)