Record keeping involves handling participant account paperwork. The paperwork includes statements (or anything else) related to an employee’s participation or servicing needs, including investment education. The administration involves maintaining the plan’s legal documents and ensuring the plan complies with regulations. For example, DWC sends out notices and approves loans or hardship payments based on the plan sponsor’s direction. Finally, the financial investor has 401(k) experts who determine which investments are allowed on the menu of investment choices, provide counseling and ensure funds are invested for clients based on their risk tolerance and goals. A third-party administrator — such as DWC — provides a significant advantage for two reasons. First, qualifying to become a 3(16) fiduciary administrator involves additional testing and regulatory compliance, which means fiduciaries can give clients a higher level of service. Second, the separation between companies makes acting as fiduciaries easier. The company is responsible for acting in all its clients’ best interests and ensuring the Retirement Plan Exchange performs its duties. To ensure accessibility to plan sponsors, however, DWC has an office in Utah. Because of how Transamerica’s retirement programs are organized, companies that sign up with Transamerica for their employees can feel confident that a professional is reviewing and monitoring everyone’s choices. Employers who sign up to use Transamerica pay a $750 installation fee to cover the cost of Transamerica’s services. Later, employers also pay an annual administrative fee of $1,000. The fee for employees who participate is $22 annually. “Transamerica and its partners are a great place to start for association members who don’t have a retirement plan,” said Wayne Ericson. “Professionals in the investment retirement space sometimes use many acronyms and discuss concepts that are not simple or intuitive. It can be hard to understand. But if business owners have questions or want to review their plans, I would love to talk to them. I will discuss what we offer with anyone who is interested, and I am more than happy to help them.” Potential new hires at any company are interested in two important questions before accepting a job offer: How much will they earn, and what benefits are available? If you are interested in obtaining more information about the Transamerica Retirement Plan Exchange, please contact Wayne Ericson at wayne.ericson@transamerica.com or 801-230-9981. 11
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