AUGUST 2009 Pension Plan tip of the month...

Retirement Plan Forms

Important Processing Information

Some important questions have often arisen regarding Retirement Plan forms:

Using Current Forms:

The first important issue, in order to maintain regulatory compliance, is to make sure all forms are current by printing from the plan sponsor website on an “as needed” basis rather than keeping a supply on hand.  In the case of enrollment forms, it’s advisable to order new enrollment kits periodically.  This will ensure that all forms contain the most current tax, investment, and other information.  This will also ensure that your service provider’s Processing Center is able to process forms in the most-timely manner.

Timely Submission:

The second important issue is to be sure that forms are submitted on a timely basis.  It is imperative that enrollment forms for new participants are submitted (or, if applicable, new participants are added through online enrollment) before contributions are remitted to the investment company to avoid having contributions returned.  Please be aware of your plan’s entry dates and plan eligibility.  If your plan has quarterly entry dates, for example: 1/1, 4/1, 7/1 and 10/1, please be sure to review employee records in advance of those dates to determine who has met eligibility.  This will ensure that there is sufficient time to distribute and collect forms for newly eligible participants so that contributions can be timely submitted for those periods.

The preceding refers to newly eligible participants.  Form submission procedures and timing for those previously eligible could be affected by your plan’s deferral modification provisions.  Please contact your Account Executive if you have any questions.

Where to send forms:

What do I do with Beneficiary Forms?

Your plan record keeper or investment provider may keep copies of enrollment and beneficiary forms in their files.  However, it is advisable that an Employer maintain a record of all beneficiary, change of beneficiary, and spousal waiver forms on file or have a procedure in place to obtain the most recent forms when needed.  In the event of a participant’s death, the Plan Administrator will be responsible for completing or obtaining the beneficiary information.

What forms should be sent directly to the record keeper (investment firm)?

In most instances, participant enrollment forms and rollover contribution election forms can be sent directly to the record keeper.  If you are unsure of the process for your Plan, please contact your Account Executive at Paragon for assistance.   Please note that participants should make any investment election changes or investment transfers via the Internet or Interactive Voice Response System through the record keeper.

What forms should be sent directly to Paragon?

Unless the process is fully automated, withdrawal forms, including hardship distributions, termination requests and loan applications, should be sent directly to us via fax or e-mail (originals should be kept for your files).  Many of these forms will include Social Security information; please use our SecureFileX website which can be accessed from www.tpagroup.com if you would like to send us the forms via the internet.  We will complete certain sections, review the entire form and then forward it to the investment carrier.  Please note that, in some circumstances, such as a large balance withdrawal, original forms or endorsements may be required.