Case Studies



Reduce the time and administrative costs of performing distribution tasks for their clients.


Company Situation

PASI, LLC is one of New England’s premier private pension consulting and third party administration firms, helping small businesses design, implement, communicate and evaluate their retirement programs. PASI administers more than 1,200 retirement plans, some of which require in-house distribution and recordkeeping services. Many of these plans, including those involving brokerage accounts, require PASI to invest significant time and resources in performing the distribution and related reporting for these plans.

The PenChecks Trust Solution

A leader in the area of plan design and implementation, PASI has chosen to allocate its resources to those tasks best suited to their expertise and operations, while outsourcing to PenChecks the tasks for which PenCheck’s robust and process-oriented infrastructure is uniquely well-suited. For the PASI accounts required to perform their own distributions, PenChecks Trust now processes all distribution payments for plan participants, and prepares and files end-of-year 1099 reporting and all other filings associated with retirement distributions and rollovers.

PenChecks Trust also provides Automatic Rollover IRA services for plans with non-responsive participants whose account balances are less than $5,000, all pursuant to Department of Labor (DOL) regulation 29 CFR §2550.404a-2. This regulation enables plan sponsors to force out small accounts, thereby reducing costs and improving the health of their plans.

Recently, PASI also began taking advantage of PenChecks Trusts’ Missing Participant IRA service to properly manage the assets of missing plan participants. Like the Automatic Rollover IRA program, plan sponsors simply transfer the money and required synoptic data to PenChecks Trust, who then establishes a Missing Participant IRA in accordance with DOL regulation 29 CFR §2550.404a-3. The PenChecks Automatic Rollover and Missing Participant IRAs help plan sponsors fulfill their fiduciary obligations and provide the plan sponsor with a Safe Harbor for the distribution.


As retirement plan distribution specialists, PenChecks Trust saves PASI the cost of administering and performing the many distribution activities required of retirement plans. Furthermore, it reduces PASI’s administrative workload, allowing staff to focus on the company’s core business of designing and implementing retirement plans for their clients.

PenChecks Trust also saves PASI’s clients significant time and administrative work. For example, because PenChecks Trust uses its own Employee Identification Number for the 1099 reporting, it removes this responsibility from the plan sponsors. As a result, plan sponsors no longer have to report the distributions or deal with IRS notifications regarding those distributions.

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