Case Studies

Angell Pension Group

case-study7OBJECTIVE:

Assist clients in distribution processing, tax withholding and reporting and managing missing participant accounts when terminating plans.

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Company Situation

The ANGELL Pension Group is a national leader in third-party administration and compliance, providing a full array of administrative, actuarial, Section 125 and nonqualified services to more than 3,000 clients nationwide.

Many of ANGELL’s clients, especially those with brokerage accounts, struggle with record keeping and tracking, as well as the tax withholding and remittance aspects of plan distributions. Others have problems finding and cashing out missing participants when terminating plans.

As part of their services, ANGELL assists these clients in completing these burdensome tasks. To reduce the administrative workload of their own staff and that of their clients, ANGELL now refers these clients to PenChecks Trust.


The PenChecks Trust Solution

PenChecks Trust provides ANGELL and its clients with a seamless process for managing plan distributions and tax withholdings. When a client needs assistance processing a distribution, ANGELL assists the client in the set-up of their plan account with Penchecks Trust. The trustee or custodian wires the funds to PenChecks Trust, and an ANGELL staff member works with PenChecks Trust to verify the details.

In most cases, ANGELL or the plan sponsor transmits the benefit election form to the participant, and ANGELL assists in completing the distribution instructions to PenChecks Trust. In the case of lost or missing participants, the applicable information is provided to PenChecks Trust, and they complete the search process and benefit payment.

PenChecks Trust handles the entire process, from cutting and mailing checks (or processing wires or ACHs) to withholding and reporting taxes and the remittance process. PenChecks Trust even generates and files the required 1099-R forms at the end of the year. PenChecks Trust also offers a complete missing participant solution that involves locating unresponsive plan participants and reuniting them with their funds.

When former employee plan participants are unresponsive, PenChecks Trust initiates search efforts to locate them. When they are found, PenChecks Trust processes the benefit election forms, and then processes the distributions via check, wire or ACH.

When participants can’t be located or otherwise fail to respond, PenChecks establishes Default IRA accounts to ensure the assets are properly managed according to Department of Labor Safe Harbor regulations.


Results

ANGELL no longer has to spend large blocks of time trying to locate missing participants, walking clients through the process of electronically remitting federal withholding taxes, and dealing with the complexities of filing in many different states. As a result, staff can now focus on the company’s core business of plan compliance and consulting.

ANGELL clients also save time and money by turning some or all of their distribution processing activities over to PenChecks Trust. Additionally, PenChecks helps ANGELL’s plan sponsors meet their fiduciary responsibilities with respect to missing participants.

PenChecks - Save Time, Reduce Risk, and Lower Operating Costs: Call 800.541.3938 or .