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LCN-1909643-092917 Employee Information Gathering & Census Processing for Recordkeepers Chris Robino ERISA Counsel, DST Maggie Younis Senior Consultant, Lincoln Financial Group
LCN-1909643-092917
Employee Information Gathering & Census Processing for Recordkeepers
Chris Robino
ERISA Counsel, DST
Maggie Younis
Senior Consultant, Lincoln Financial Group
LCN-1909643-092917
Agenda
• Importance of Census Data
• Data Integrity/Red Flags
• Pre-Contribution Quality Controls
• Payroll Integration
• Partial vs. Full Census
• Staffing Models – Best Practices
LCN-1909643-092917
Audience Survey
What type of services do you provide?A) Eligibility Determination
B) Automatic Enrollment
C) Automatic Increase
Is it system driven or manual?A) System
B) Manual
LCN-1909643-092917
Importance of Census DataCensus Data
• Full Legal Name
• SSN
• Address
• Date of Birth
• Original Date of Hire (multiple employment history indicators)
• Date of Termination
• Date of Re-Hire
• Compensation
• Hours Worked
• Contributions (Pre-Tax, Roth, Match, Employer)
Uses of Census Data
• Eligibility
• Vesting
• Investing – age based default investments
• Contributions
• Distributions
• Compliance
• Plan Design Analysis
• Plan Health Reporting – benchmark against industry and market segments
• Benchmarking – against Recordkeeper client base
LCN-1909643-092917
Data Integrity
• OFAC
• Anti-money Laundering
• Privacy
• Cyber Security
- Personally Identifiable Information (PII)
- Who is authorized to handle the files/information?
- Does Recordkeeper have secured websites, use of protected files, encrypted emails/files?
LCN-1909643-092917
Audience Survey
• Do you have an in-house dedicated payroll team or do you outsource the service?A) In-house dedicated payroll
B) Outsource
• Does it depend on the complexity of the client?A) Yes
B) No
LCN-1909643-092917
Pre-Contribution Quality Controls• Most Recordkeepers receive a preliminary file and perform a data scrub
• Generally request a test payroll file (standard or custom format depending on service level)
• Conduct separate payroll calls during the implementation process to discuss issues/errors
• Sometimes a change of payroll providers is necessary depending on the complexity of the plan and that data required
LCN-1909643-092917
Audience Survey
• Do you provide for Payroll Integration?
A) Partial
B) Full (360 Integration)
LCN-1909643-092917
Payroll Integration
• Reduce costs
• Reduce manual process
• Increase security (fewer people touching the files)
• Recordkeeper/TPA usually works directly with payroll provider
• Still manual intervention
• Quality—does system catch errors if fully automated?
LCN-1909643-092917
Partial vs. Full CensusFull Census
• Complete file uploaded with each payroll
• Usually required if Recordkeeper is determining eligibility, contributions, vesting
• Depends on Recordkeeper and how employment history is captured (can system track changes vs. override data?)
Partial Census
• Only provided when changes occur
• Typically more manual for plan sponsor vs. complete payroll file
• Depends on Recordkeeping system if a change file results in more accurate tracking
LCN-1909643-092917
Staffing ModelsIn general most Recordkeepers are segmented by function and the services depend on size of plan and/or level of support plan sponsor chooses (vary by price and firm)
• Small/Micro Market plans
• Institutional/Large Market plans
Some Recordkeepers and many TPAs provide a more general approach and manage a book of business, they do not focus on function
• Typically more automation/self-service with payroll
LCN-1909643-092917
Audience Survey
What type of staffing model do you use?A) Segmented by function (payroll, distribution)
B) Reps are assigned a book of business and handle all aspects of the plan
LCN-1909643-092917
Staffing ModelsSmall/Micro Market• Pooled processing team approach to review
errors
• Usually requires use of a standard payroll file layout
• Delivery through a secured website
• Leverage of functional teams (operations, compliance, relationship mgmt) to manage the plan administration across a large number of plans
• System may have alerts to remind plan sponsors to remit payroll based on schedule
Institutional/Large Market• Assigned a dedicated team
• Customized payroll file layout based on data client can provide and/or client preferred format
• Greater familiarity with the client and plan, resulting in more efficient plan administration - high touch customer service
• Better monitoring for delinquent contributions, rep knows the payroll schedule/timing and can send reminders
• Provide eligibility, automatic enrollment tracking
LCN-1909643-092917
Thank You
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.Affiliates are separately responsible for their own financial and contractual obligations.
