Schwab RT SQL Recordkeeping Operations Library Multiple Employer Plan (MEP) Processing

Transcription

1 Schwab RT SQL Recordkeeping Operations Library Multiple Employer Plan (MEP) Processing Schwab Retirement Technologies Recordkeeping Operations Library

2 Schwab RT Recordkeeping Operations Library Multiple Employer Plan (MEP) Processing February 6, 2006 Copyright 2006 by Schwab Retirement Technologies, Inc., a wholly-owned subsidiary of The Charles Schwab Corporation and an affiliate of Charles Schwab & Co., Inc. Information in this document is subject to change without notice. No part of this document can be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose without the express written permission of Schwab Retirement Technologies, Inc. For further information, contact Schwab Retirement Technologies, Inc. at Ballantyne Corporate Place, Suite 300, Charlotte, NC 28277, USA, Tel: (800) , Web site: schwabrt.com. Schwab RT Administration Solutions is the property of Schwab Retirement Technologies, Inc., a wholly-owned subsidiary of The Charles Schwab Corporation and affiliate of Charles Schwab & Co., Inc. Katrina Emergency Tax Relief 01/2006 Schwab Retirement Technologies Page 2 of 13

3 Table of Contents The Recordkeeping Operations Library... 4 Multiple Employer Plans... 5 Setting Up MEPs... 5 Control Plan... 5 Fee Hierarchy... 5 Participant Records in an MEP... 6 MEP Path Maintenance... 6 Modifying the Path of an MEP Plan... 6 Deleting a Plan from an MEP... 7 Results... 7 Maintain MEP Path Window... 7 How to process Contribution Returns for Plans in MEPs... 8 Setup Control Group/MEP Plan Options... 9 Return Amounts Window... 9 Schwab RT Applications that Process MEPs Page 3 of 13

4 The Recordkeeping Operations Library The Schwab RT SQL Recordkeeping Operations Library provides you with topicspecific documents available for recordkeeping system processes. Collectively, these documents comprise Schwab RT s Recordkeeping System Manual of modular individual topics that can be individually maintained with current information, for on-demand downloading and printing. Topic-specific documents coordinate with the Recordkeeping online Help system, and overcomes printing limitations with on-line html Help pages. Additional technical setup procedures and tips might be included in topic-specifics documentation that is not pertinent to the on-line Help. If you are new to Schwab RT you may also want to refer to our Recordkeeping Setup, Options, and Maintenance Reference Guide for overviews of many key SQL Recordkeeping concepts and setup options. Page 4 of 13

5 Multiple Employer Plans You can use Multiple Employer Plans to group plans together for processing. In order to group plans together in a Multiple Employer Plan, the plans must have the same source/investment matrix, and they must use the same Header ID and Report Tax Map. Each MEP includes a control plan that determines the common (default) information for the plans in the MEP. The MEP ID is a user-defined identifier for a Multiple Employer Plan. The MEP ID field provides a list of IDs for all Multiple Employer Plans that have been defined. Setting Up MEPs When you are setting up a new plan and specify participants to copy from an existing plan, the Existing Plans field shows the plans that are part of that MEP. To copy participants from a plan that already exists in the specified Multiple Employer Plan to another plan, select the Copy Participants from an Existing Plan within the MEP checkbox. Then select the appropriate plan from the Existing Plans field. Control Plan Each Multiple Employer Plan group requires one control plan. The control plan identifies the source and investment information, Header ID, and the Report Tax Map used by all plans in the Multiple Employer Plan group. Fee Hierarchy You can use Fee Schedule Maintenance to assign a fee schedule to an unused Fee Schedule ID code (codes and 750). Before assigning a schedule, you may want to modify the code description in Code and Map Maintenance to identify the new schedule. To assign fees to a schedule, do the following: 1. Open Fee Schedule Maintenance. The Fee Schedule Setup window appears. 2. In the Fee Schedule ID field, type or select the appropriate schedule identifier. 3. In the Fee Type field, select whether the schedule is for plan or participant-level fees. 4. To enter basic fees, enter the basic fee amount, minimum fee amount and maximum fee amount under Basic Fee. 5. To enter market-based fees, complete the appropriate fields in the Market-Value window. 6. To enter transaction-based fees, complete the appropriate fields in the Transaction window. Note: A schedule can contain any or all of the above fees. 7. From the Options menu, click Save. The Fee Hierarchy field indicates how fees are taken from the plan. Page 5 of 13

6 Participant Records in an MEP When a plan is saved as part of a Multiple Employer Plan, the following applies: If the plan was previously part of a different MEP, then the original MEP participant records from the previous MEP are deleted and the new MEP participant records are inserted. If the plan was previously saved without an MEP association, the system inserts MEP participant records according to the selected MEP. If this is a new plan (just inserted) and an existing MEP ID is selected, Plan Maintenance allows you to copy participant records from a plan in that same MEP. To insert a new MEP ID, do the following: 1. Click Insert MEP ID. The Insert MEP ID dialog appears. 2. In the MEP ID field, type the new MEP ID. Tip: The MEP ID can contain up to 3 alphanumeric characters. 3. Click Insert. The new MEP ID appears in the MEP ID field under Multiple Employer Plan on the Plan Groups window. If you want to use a plan as the control plan for the Multiple Employer Plan, select the Use as Control Plan checkbox when setting up the plan. MEP Path Maintenance The MEP Path Maintenance application enables you to modify the path of a plan in an MEP (multiple employer plan) or to remove a plan from an MEP. MEPs allow you to group together similar plans offered by more than one employer. The grouped plans are linked together by a multiple employer plan identifier (MEP ID). These plans can be processed simultaneously but separately in several applications. Note: If you need to add an MEP ID, you can do so in the Plan Level Settings folder in Plan Maintenance. Modifying the Path of an MEP Plan To modify the path of an MEP plan, do the following: 1. Open MEP Path Maintenance. The Maintain MEP Path window appears. 2. Select the MEP ID for which you want to maintain the path. 3. Select the Plan ID for which you want to maintain the path. Tip: The Path field displays the path in which the MEP resides. 4. Modify the path by doing one of the following: a. Type the correct path in the Path field. b. Click Browse and select a new path on the Select a Path dialog box. 5. On the Options menu, click Save. Page 6 of 13

7 Deleting a Plan from an MEP Results To delete a plan from an MEP, do the following: Schwab RT Recordkeeping MEP Processing 1. Open MEP Path Maintenance. The Maintain MEP Path window appears. 2. Select the MEP ID from which you want to delete a plan. 3. Select the Plan ID which you want to delete from the selected MEP. Tip: The Path field displays the path in which the MEP resides. 4. Delete the plan by clicking Delete on the Options menu. The results of processing in the MEP Path Maintenance application are as follows: When you modify the path of an MEP, the new path is updated in the MEP Master file (Mep.btv). When you delete a plan from an MEP, the plan's records are removed from the MEP Master file (Mep.btv) and from the MEP Participant Master file (Mepprt.btv). Maintain MEP Path Window The following fields are on the MEP Path Window in the MEP Path Maintenance application. MEP ID The MEP ID field lists all multiple employer plans that reside on the system. In the MEP ID field, type the identifier of the multiple employer plan for which you want to maintain the path. Plan ID The Plan ID field lists all plans identified in the plan index. In some applications, you can choose to process all plans in the current path. In the Plan ID field, type the identifier of the plan or select it from the list. Path The Path field displays the path in which the MEP resides. You can modify the path by either typing the correct path in the Path field or clicking Browse and selecting a new path on the Select a Path dialog box. Browse You can modify the path in which the MEP resides by clicking Browse and selecting a new path on the Select a Path dialog. Page 7 of 13

8 How to process Contribution Returns for Plans in MEPs 1. Open Contribution Returns. The Process Setup window appears. 2. Under Violation Return Type, select the return type to be processed with the returns. 3. Under Earnings Basis, select either beginning or ending as the basis. 4. Under Investment Return Basis, select either ending balance or contributions. 5. Under Price Option, select whether you want to use the settlement date or the trade date. 6. In the Gap Months field, type the number of gap months to be processed with the returns. 7. Open the Return Amounts window. 8. In the Plan ID field, type a plan identifier or MEP identifier. 9. In the Cycle Code field, select the period for which you want to process the returns. Note: If you select a user-defined cycle, specify the beginning and ending dates of the cycle in the Beginning Date and Ending Date fields. 10. Under Transaction Date for Test, select whether you want to use the process date or As Of date in processing the returns. 11. Under Price Option, select whether you want to use the settlement date or the trade date. 12. In the As of Date field, enter the As Of date to be used for processing the returns. 13. In the Maximum Investment Percent to Return field, enter the percentage to be used for processing the returns. 14. Click Group Options. The Setup Control Group/MEP Plans Options dialog box appears. 15. In the Plan ID field, type a plan identifier or select it from the list. 16. Under Memo Transactions, select whether you want to include memo transactions in the calculations. Note: If you select the Include checkbox, specify the first date for which you want to include memo transactions in the Beginning Date field. 17. In the Forfeiture Management Account field, type in an account or select it from the list. 18. Repeat steps 9 11 for each plan within the Control Group/MEP. 19. Click OK. 20. To produce a listing of processed returns, select the Print Detail checkbox. 21. From the Tax Codes window, specify the tax codes for how you want to process the returns. 22. From the Options menu, click Process. Tip: You can use the Report Setup option on the File menu to define the print options. Page 8 of 13

9 Setup Control Group/MEP Plan Options Plan ID The following fields are on the Setup Control Group/MEP Plan Options window in the Contribution Returns application. The Plan ID field lists all plans identified in the plan index. In some applications, you can choose to process all plans in the current path. In the Plan ID field, type the identifier of the plan or select it from the list. Memo Transactions The Include checkbox indicates whether memo transactions are included when processing the Contribution Returns application. Memo transactions have no effect on the system balance; they are simply stored in transaction history to keep a record of activities processed outside of the system. The Beginning Date field displays the beginning date to include memo transactions. The system displays this date if you select the Include checkbox. The date can be overridden. Note: This date can be outside of the cycle code selected. Forfeiture Management Account The Forfeiture Management Account field identifies the account used to receive the unvested portions of the participant accounts that are to be returned. In the Forfeiture Management Account field, type the forfeiture management account identifier or select it from the list. Return Amounts Window Plan ID Cycle Code The following fields are on the Return Amounts Window in the Contribution Returns application. The Plan ID field lists all plans identified in the plan index. In some applications, you can choose to process all plans in the current path. In the Plan ID field, type the identifier of the plan or select it from the list. The Cycle Code field displays the time periods for which the application will be processed. The cycle codes listed are those defined in Plan Maintenance. In the Cycle Code field, type the cycle code or select it from the list. Note: When selecting User-Defined Cycle, you can specify the beginning and ending dates of the cycle in the Beginning Date and Ending Date fields. Beginning Date The Beginning Date field displays the first process date used. When choosing User-Defined Cycle in the Cycle Code field, the system populates this field with the beginning date defined in Plan Maintenance. To override this date, enter a different beginning date. When choosing a predefined cycle, the system determines the beginning date. Page 9 of 13

10 In the Beginning Date field, type the beginning date in MMDDYYYY format. For example, to enter the date January 20, 2011, type Ending Date The Ending Date field displays the last process date used. When choosing User-Defined Cycle in the Cycle Code field, the system populates this field with the ending date defined in Plan Maintenance. To override this date, enter a different ending date. When choosing a predefined cycle, the system determines the ending date. In the Ending Date field, type the ending date in MMDDYYYY format. For example, to enter the date January 20, 2011, type Page 10 of 13

11 Transaction Date to Use The Transaction Date field determines how the analysis will be calculated. Under Transaction Date, select one of the following: Select To Process Date As of Date Build the basis using transactions that have a process date during the selected cycle. Build the basis using transactions that have an As Of date during the selected cycle. Price Option The Price Option indicates whether the settlement or trade price will be used to compute the beginning and ending market values. Under Price Option, do one of the following: Select Settlement Trade As of Date To Use the actual price used to purchase or sell the trade. This price is used in daily reconcilement. Use the price at which the trade was ordered; it is the estimated price on the Buy/Sell worksheet. To process and record transactions with a date prior to the current process date, enter the date in the As of Date field. The As Of date can be used to include activities for other processing and reporting. In the As of Date field, type the As Of date in MMDDYYYY format. Example: To enter the date January 20, 2011, type Note: If you do not enter an As of the return date to the year which you are returning money, the date stored in the transaction history will be the date that the return was released. If you rerun the test, it will not pass because the cycle will not include the return. Maximum Investment Percentage to Return The Maximum Investment Percentage to Return field allows you to specify the amount of the investment available for liquidation by the application. If the amount to be returned exceeds the percentage entered in this field, the system attempts to return the difference from the remaining investments on a prorated basis. In the Maximum Investment Percentage to Return field, type the appropriate percentage. Note: This field protects investments from being overdrawn. Page 11 of 13

12 Memo Transactions Schwab RT Recordkeeping MEP Processing The Include checkbox indicates whether memo transactions are included when processing the Contribution Returns application. Memo transactions have no effect on the system balance; they are simply stored in transaction history to keep a record of activities processed outside of the system. The Beginning Date field displays the beginning date to include memo transactions. The system displays this date if you select the Include checkbox. The date can be overridden. Note: This date can be outside of the cycle code selected. Forfeiture Management Account The Forfeiture Management Account field identifies the account used to receive the unvested portions of the participant accounts that are to be returned. In the Forfeiture Management Account field, type the forfeiture management account identifier or select it from the list. Group Options Print Detail Click Group Options to open the Setup Control Group/MEP Plan Options dialog box. Complete the appropriate fields for each plan within the Control Group/MEP and click OK. The Print Detail checkbox indicates the level of detail that displays on reports. To print a detailed report, select the Print Detail checkbox. Page 12 of 13

13 Schwab RT Applications that Process MEPs Multiple Employer Plans (MEPs) can be processed simultaneously but separately in the following applications: 415 Test Allocation Report Automated Data Translation (Synoptic and Financial) Confirmation Letters Confirmation Letters (Fixed) Contribution Returns Determine Highly Compensated Employees Exchanges and Transfers MEP Path Maintenance Participant Fees PIN File Report PIN Maintenance PIN Notification Letter Plan Fees Post Hours/Clear Participant Data TBOL Execute VRS/OPI Inquiry VRS/OPI Interface Detail Report VRS/OPI Interface File Audit VRS/OPI Record Lock Maintenance VRS/OPI Refresh VRS/OPI Update Page 13 of 13