Case Study: Private School Partners With PRM To Meet 403(b) Obligation
Opportunity:A private school with more than 260 employees faced decreased administrative services from its retirement vendor, resulting in questions regarding ongoing plan operations. Additionally, changes to the 403(b) regulations added anxiety regarding the plan meeting all compliance laws and having the ability to pass a 403(b) audit in the future. PRM was hired to evaluate all plan operations and recommend where changes needed to be made to reduce any compliance exposure.
Solution:PRM met with the human resources staff and reviewed every aspect of the plan, ranging from employee enrollment to premium remittance. After gathering information, PRM advised the school on how to apply IRS guidelines to plan operations and customized a new plan document. We also conducted discrimination testing to address plan design concerns. PRM recommended that the school use a safe harbor approach, and also evaluated the Department of Labor changes to the Form 55000 and recommended an approach to save the school money on a go forward basis.
Result:The school has an updated document that recognizes all plan provisions. The nondiscrimination test revealed a need for the school to increase participation and a campaign was conducted to include more eligible but non-participating employees. Through 2009, the school successfully enrolled more than 90% of eligible participants, which is a 20% increase over prior participation levels. Additionally, the school implemented the approach to make the plan easier to follow for Form 5500 purposes, and will be saving several thousands of dollars a year on an audit that will need to be included with the Form 5500. The recommendation of treating the plan as a safe harbor resulted in less pressure to pass discrimination testing and positioned the plan for easier administration going forward. The enrollment process has been updated, and changes were made to the salary reduction agreements, making them consistent with our recommendations. Finally, the Director of Human Resources now calls upon PRM for any and all issues relating to the retirement plan as we now fill the void created by the change in service delivery of their current retirement vendor.
Click the link below to download this case study.
PRM Retirement 403(b) Case Study (67 KB)
Retirement Benefits News
PRM’s Reese Co-Authors Total Compensation E-Book 19-Apr-2016
ROCKVILLE (April 2016) – The Primer on Total Compensation in Government is a recently rele..
WASHINGTON (April 1, 2015) — PRM Consulting Group, which provides full service support on ..
Washington, D.C., September 20, 2012 – According to the 2012 edition of PRM Consulting, Gr..
PRM Anaylsis: Affordable Care Act Ruling03-Jul-2012
The Affordable Care Act was Upheld, So Now What? What the Supreme Court Decision Means for Emplo..
WASHINGTON, DC (SEPTEMBER 2011) – Washington, D.C., September 21, 2011 – According to th..
WASHINGTON D.C. (March 29, 2011) According to the 2010 edition of PRM Consulting, Group’s (PRM..
IRS Announces 2011 COLA Limits19-Nov-2010
The Internal Revenue Service (IRS) has announced its 2011 cost-of-living adjustments (COLA) that..
PRM Communications Wins National Awards12-Jul-2010
ATLANTA, GEORGIA (July 2010) – PRM Consulting Group’s Atlanta-based communication te..
PRM’s Michael Rhim Featured on CNN.com09-Jan-2009
WASHINGTON, DC (JANUARY 2009) – PRM principal and retirement consultant Michael Rhim was featured on..
PRM Opens Richmond Office for Business07-Jan-2009
Richmond, VA (January 2009) – PRM Consulting Group has expanded its operations, opening a new office..
WASHINGTON, DC – As of January 1, 2009, changes to the Internal Revenue Service code affecting 403(..