11Roadways to Retirement

Conversion and Enrollment by BPAS

Thoughts on the process

2

Roadways to RetirementRoadways to Retirement

Enrollments during conversion process

Alternative # 1: Traditional “mapover” method

All existing balances are mapped into new menu of funds as of conversion date (some funds may stay the same)

Participants complete enrollment form after enrollment meeting to tell us how new contributions should be invested beginning with the conversion date

BPAS completes conversion

At end of blackout, PINs are mailed to participants

– Initial User ID = full SSN w/out dashes

– Initial Password = date of birth entered as mmddyyyy

At this point, participant can re-align account into any mix of funds as desired.

3

Roadways to RetirementRoadways to Retirement

Enrollments during conversion process

Alternative #2: The “single fund” conversion method

Useful for plans coming from a very complicated investment menu, individual brokerage accounts, or where prior recordkeeping may have been “questionable”

As of conversion date, all existing balances are liquidated, single wire is sent to BPAS (entire plan balance)

All balances are invested in a single fund (money market, stable value or balanced fund, etc). In some circumstances, existing account balances can be re-allocated according to investment elections provided on enrollment forms after the conversion is over.

Participants complete enrollment form after enrollment meeting. This is used to invest new contributions only starting on the conversion date.

At end of blackout, PIN letters are mailed.

From that point forward, participants can re-align account into any mix of funds as desired using web / VRU.

4

Roadways to RetirementRoadways to Retirement

Enrollments during conversion process

Alternative #3: Special approach to streamline the process for HR and participants

Maintain existing fund menu: sometimes that is the employer’s specific goal (keeps participants in the same mix of funds)

We can map over investment elections (for new contributions) if the prior recordkeeper will provide an electronic file of the information.

Deferral rates can be entered or changed online (attractive for larger plans)

Existing participants don’t need to take any action unless they want to A) change deferral rate, B) change mix of funds, or C) change beneficiary designation

This approach can minimize the disruption to a plan, especially when the conversion is being driven by the trustee’s recommendation to change recordkeepers

5

Roadways to RetirementRoadways to Retirement

Enrollment of new

participants over time

Employers report new employees to BPAS on the first payroll/census file after hire date.

BPAS determines eligibility by source for each plan we administer

We notify HR of new employees becoming eligible for each money source through the ‘Action Items’ tab of the sponsor website (see slides 10 & 11 for illustration)

Employers should use this report to provide participants nearing eligibility with an enrollment kit. The information contained in the enrollment kit will vary, depending on what enrollment type is used

Fact sheets and forms are provided in enrollment booklets. All fact sheets and prospectuses are also provided at all times through participant website (e-delivery, most recent copy available, etc)

6

Roadways to RetirementRoadways to Retirement

Enrollment of new

participants over time

Traditional Enrollment Option

Participant selects deferral rate and investment elections for new contributions on a paper enrollment form.

HR enters deferral rate into payroll system and sends a copy to BPAS to enter investments elections into the system

A PIN letter is mailed to the participant once the first contribution is posted to their account. Please note: the participant will not have access to his/her account until their first contribution has been posted

This method is typically not recommended due to the numerous problems and hidden liabilities

inherent in using paper forms

7

Roadways to RetirementRoadways to Retirement

Enrollment of new

participants over time

Basic Online Enrollment Option

As soon as a new employee is reported to BPAS on a census/payroll file after their hire date, a PIN letter is mailed to the employee’s home.

The PIN letter will provide instructions for accessing the participant website or VRU.

Participant will access their account and make investment elections for new contributions online or by using the VRU.

Participant selects deferral rate by completing a paper form and submits to HR for entering into the payroll system.

8

Roadways to RetirementRoadways to Retirement

Enrollment of new

participants over time

Full Online Enrollment Option

As soon as a new employee is reported to BPAS on a census/payroll file after their hire date, a PIN letter is mailed to the employee’s home.

The PIN letter will provide instructions for accessing the participant website or VRU to select a deferral rate and investment elections.

Participant will select a deferral rate and investment elections for new contributions online or by using the VRU (see slide 12 for illustration)

All new and existing deferral rate changes are reported to HR by a report in the “Action Items” tab of the sponsor website. HR is responsible for reviewing this report prior to each payroll period to update the payroll system accordingly.

Because all deferral rate elections for new employees and deferral rate changes for existing employees

must be made online, no paper forms can be accepted by BPAS.

9

Roadways to RetirementRoadways to Retirement

Communication memos

New provider announcement and mapover memo (two versions; Trustee Toolbox: E8 and E9)

Memo regarding fact sheets and prospectuses (Trustee Toolbox: E11)

Conversion Has Ended Notice (Trustee Toolbox: E15)

Other education / communication tools (see Education tab of Trustee Toolbox)

10

Roadways to RetirementRoadways to Retirement

This is the ‘action items’ tabof the sponsor website. It includes a number of reports to prompt or remind HR of various actions to be taken. In the eligibility section are specific reportsfor employees becoming eligible by money type (401k, match, profit sharing, etc), for the current and next entry date.

11

Roadways to RetirementRoadways to Retirement

Here is a sample of the “next quarter pre-tax eligibles” report. This report is updated every Saturday and posted to the sponsor web. It provides a list of the specific participants becoming eligible for that source of money for the current (or next) entry date.

12

Roadways to RetirementRoadways to Retirement

Here is a sample of the “enrollment tab” within the participant website. It gives participants the information and resources they need to enroll in the plan.

13

Roadways to RetirementRoadways to Retirement

FlexibilityThe needs of a 20 participant

plan and a 3,000 life plan vary dramatically

Working with the trustee, we have the flexibility to support many different scenarios

Save considerable work for the HR department and streamline life for participants

Our communication memos can be modified to suit the unique situation preferred by the client

A winning solution!