Your Responsibilities as Plan Sponsor &
What AutoMEP does to help with those Responsibilities.
Your Responsibilities as Plan Sponsor in a Traditional 401(k) Plan
As the Employer/Plan Sponsor, with no added protection:
What AutoMEP does for YOU
- You are personally liable for any 401(k) issues, past, present and future.
- You are the Fiduciary on the Plan and will have to answer and fix any financial issues that arise.
- You are responsible for taking as much time as needed to monitor, manage and fix all 401(k) plan costs, fees, etc.
- You serve as Plan Sponsor, Named Fiduciary and Trustee of the Plan.
- Design Plan Document and maintain qualiﬁed status.
- Provide prospectus delivery to participants on investment alternatives and maintain copies on ﬁle for prospectuses, ﬁnancial statements and reports provided to the Plan.
- Oversee and manage process, in conjunction with Third Party Administrator, for annual ﬁling of Form 5500.
- Administer hardship withdrawals in compliance with the Hardship Rules deﬁned in the Pension Protection Act of 2006.
- Distribute enrollment materials to all eligible employees including Summary Plan Description SPD, 404(c).
- Compliance information, Qualiﬁed Default Investment Alternative (QDIA), and explanation of fees & expenses.
- Review and validate compliance testing.
- Administer distribution and rollover requests for terminated employees.
- Comply with ERISA Section 404(c) provisions for participant communications, including but not limited to:
- Notice to participants of intention to comply with 404(c).
- A description of investment alternatives available in the Plan.
- Description of transaction fees and expenses which affect the participant account balance.
- Administer participant loans in compliance with statutory requirements of non-discrimination and tracking of loan payments including interest charges.
AutoMEP removes the employer as the Plan Sponsor for the company’s retirement plan.
- AMI Benefit Plan Administrators, Inc. serves as the Plan Sponsor.
AutoMEP reduces most of the employer fiduciary liabilities by transferring those liabilities to a professional Plan Administrator and other independent fiduciaries.
- AMI Benefit Plan Administrators, Inc. serves as the Plan Administrator.
- Rehmann Retirement Builders serves as the Third Party Administrator ("TPA") providing ERISA 3(16) Fiduciary services.
- Rehmann Capital Advisory Group serves as the ERISA 3(38) Investment Manager.
- Alta Trust serves as the Directed Trustee.
AutoMEP reduces the employer’s liability for monitoring the plan costs.
- This is performed by AMI Benefit Plan Administrators, Inc., except for their own costs, AMI manages and approves the expenses of the plan.
AutoMEP allows adopting employers to maintain flexibility by determining company contributions, vesting schedules, plan eligibility requirements and other key plan features.