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Q. What is the role of a Third Party Administrator (TPA)?
A. Third Party Administrators provide expertise on retirement plan design and administration. For more detailed information on how QPC can provide this expertise, please click on individual aspects below.

  • Installation assistance in setting up new plans
  • Comprehensive plan document drafting services
  • Performing complete annual compliance testing
  • Handling all government reporting requirements
  • Providing assistance on all types of distributions and plan loans
  • Reconciling assets and loans for "takeover" plans
  • Cost effectiveness through efficiency and expertise

Q. How does QPC offer installation assistance in setting up new plans?
Create plan design illustrations based on business owner’s objectives
Establish plan provisions via face-to-face meeting or phone conference

  • Work with financial advisors to choose the appropriate investment product for the client
  • Draft plan documents, sample corporate minutes, and required employee notices
  • Educate new clients on regulatory requirements to keep their plan compliant

Q. What plan document drafting services does QPC offer?

  • Create IRS-approved volume submitter Adoption Agreement with employer-chosen provisions
  • Create Summary Plan Description (SPD) for plan participants (paper and CD)
  • Professional, bound SPD booklets available on request
  • Above documents

Q. What is compliance testing and what does QPC offer?
A. Regulations require plan sponsors to prove that the plan contributions or benefits do not favor the owners and highly paid employees. This is done through a series of annual tests. QPC offers full testing services for all their clients, including Average Deferral Percentage/Average Contribution Percentage (ADP/ACP), Top-heavy, Section 415 Annual Additions Limits monitoring, Section 402(g) Salary Deferral Limits monitoring, and Section 410(b) Minimum Coverage testing. Our goal is to complete annual testing within 2 weeks after receiving complete census data from the client.

Q. What are the government reporting requirements?
A. Qualified retirement plans are required to file an annual informational report with the U.S. Department of Labor, Form 5500, with various attached schedules. This report is due no later than 7 months following the close of the plan’s accounting year, i.e. the plan year. QPC prepares Form 5500 and all required schedules for its clients. Our goal is to provide this service well before the 7-month deadline arrives.

Q. How does QPC provide expertise on plan distributions and loans?
A. QPC consultants process all plan distributions and loans on their assigned group of clients. Their role is to review each request for completeness to determine if the plan allows the distribution or loan, determine proper vesting percentage and IRS distribution code, and forward the request on to the investment company for final processing. For loans, QPC prepares all required loan documentation, including amortization schedule, Promissory Note, and Pledge & Assignment forms.

Q. How does QPC reconcile assets and loans for “takeover” plans?
A. QPC consultants work closely with the plan sponsor and their previous provider(s) in coordinating the entire transfer process. They help determine the most appropriate date to liquidate and wire transfer plan assets to the new investment company. They prepare sample liquidation letters for the client, and the required “Blackout Notice” for distribution to plan participants. Once assets have been transferred, the consultant obtains final statements from the prior investment company and prepares a spreadsheet with the detailed transfer data for upload into the records at the new investment company. Every dollar must be accounted for. For transfer loans, existing amortization schedules must be obtained and new paperwork completed in order to set up loans.

Q. How is QPC cost effective through efficiency and expertise?
A. Our staff is highly trained professionals with an awareness of the bigger picture. Although we administer our client’s plans, paying attention to the smallest details, we are also trained to “step back” and offer high-level recommendations to plan sponsors. For example, we may suggest that a client whose plan has a history of failing, ADP or top-heavy testing to consider a safe harbor plan. We would proactively run a new plan design illustration showing how this design would be of benefit.

Q. What is the role of a Financial Advisor?
A. The advisor builds and maintains relationships with the plan sponsor, its participants, and the Third Party Administrator (TPA). Brokers typically choose the investment platform for the plan to use. The broker is also the plan sponsor’s local service provider, responsible for scheduling enrollment meetings and assisting participants with selecting their investments.

Q. Who are QPC clients?
A. Financial advisors, first. Plan sponsors, second. This is because advisors  are our only source of new business at QPC. We do not maintain “house” accounts, nor do we collect brokerage commissions or provide investment advice. In other words, we do not compete against our brokers! We provide outstanding customer service to our advisors. The plan sponsors we provide services for range from owner-only businesses that sponsor “solo” 401(k) plans, to small employers with 2-1,000 employees, to large associations and Professional Employer Organizations (PEOs) that sponsor complex multiple-employer plans with thousands of employees.

Q. Does QPC support Professional Employer Organizations (PEOs)?
A. Yes, we are committed to supporting PEOs through our expertise in handling multiple employer plans. In fact, multiple employer plan administration is one of our niches! We administer a block of multiple employer plans, which require specialized knowledge, both in terms of administration of the plans, and in terms of product selection and servicing issues for the brokers. This is a market we are firmly committed to, as evidenced by the fact we are Associate Members of the National Association of Professional Employer Organizations, NAPEO. We maintain a booth each year at the annual trade conference.

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