The DATAIR News


Previous Issues

Fall 1995

In this issue...


From the Top

By Aaron Venouziou

For once, we are going into the fall legislative season with some optimism. "Pension Simplification" might mean something good for you, us and plan sponsors. Companion bills S1006 and HR2037 were introduced in July and are still in Committee, as I write this. Some of the good news is:

It’s not all good news, though... 5-year income averaging would be eliminated. Also, prototype document sponsors would take on additional responsibilities. Those of you who are plan administrators as well as document providers would not be affected. But, DATAIR would have to recommend administrators for prototypes prepared under our name. We would recommend those who license our administrative software, naturally. We will be watching the progress of these bills and will let you know of any affect on our systems and services.

We hope to see you at our Users’ Group Meeting in Washington, DC on October 29. You are welcome to stop by our booth, too, anytime during the ASPA conference. Don’t miss your chance to meet or be re-acquainted with Bill, Rick, Gina, Judy, Andy, Gary and me. We are looking forward to seeing you there.


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DATAIR Profile

By Judy Ringlein-Dunn

Please welcome Kevin Deans to our customer service staff. Kevin has been on our team since May, helping to support the Defined Contribution side of the Pen-sion Administration System.

Kevin comes to us with 13 years experience in the administration of DC plans. Kevin has his brother to thank (blame) for his career choice. Michael, an enrolled actuary and a long-time DATAIR subscriber, helped Kevin get his first pension job in Los Angeles, in 1982. Since then, most of Kevin’s experience was with a local firm that does not (yet?) use DATAIR software.

Kevin, his wife, Christine, and their 15 lb. "watch cat" share a condominium on the north side of Chicago. Kevin is the condo association president, so he’ll be leaving behind some headaches, as well as a long commute, once they sell their condo.

Kevin claims to enjoy golf. This summer, though, he earned the title of "rain god", causing foul weather whenever he hit the links. He also enjoys workouts at a local health club, but his "true love" will always be basketball (as participant and as spectator). We hear it was a tough decision, back in ‘88, choosing between a honeymoon and Bull’s season tickets.

What’s notable working at DATAIR, Kevin? "I have to say that the nicest thing is working with our subscribers, the intelligent, well-educated professionals who keep me so well occupied. I’m working on a different level now. And, it feels good, finding a solution for someone who is trying to understand how to use our system."

Use either the Pension System or Pension Reporter to file your 1099-R's Electronically

By Randy Glancy & Dave Klausler

Tired of ordering , compiling and printing all of the red Copy A 1099-R forms? It's much faster, cheaper and more convenient to use either the Pension System or Pension Reporter to create a file that can be sent to the IRS on a diskette or via modem. First,in order for you to file your 1099-R's electronically (via modem) or magnetically (diskette), you need to obtain a Transmitter Control Code (TCC) from the IRS. Form 4419 (Application for Filing Information Returns Magnetically/Electronically) must be submitted to the IRS to receive a TCC.

To produce the form in the Pension System, select Cycle T from the Main Menu and enter the information. Leave the Transmitter Control Code field blank. Then select Cycle 3(print reports) from the Main Menu and answer 'Y' to the 4419 question on the third page of the print selections.

In Pension Reporter, "Select a Plan," move to the Forms menu and choose"Transmitter Data." You need to complete the top sectionabout the transmitter, and the bottom section about filing 1099-R's Electronically or on Magnetic Media. The middle section is used for filing 5500's and you don't need to complete it. If your state is approved and participates in the "Combined Federal/State Filing Program", indicate this on the transmitter data screen so that the necessary records are included with the file sent to the IRS. Leave the Transmitter Control Code field blank. Now choose "Select..." from the "Reports" menu and select the 1099-R from the "Form" box. Check the "Form 4419" box in the lower section of the 1099-R option window. Press <ENTER> or select "OK" on both the "1099-R Options" window and the "Select" window; move down and select "Print" from the "Reports" menu.

 


Support Tips/System Reviews

By Kevin Deans

Welcome to my column! Every issue, I'll share with you a few of my favorite tips and hints. Lets start with...

DOCUMENTS

When you use the DATAIR Volume Submitter Document for a new Comparability Plan and submit to the IRS for a letter of determination, watch out!

  1. Use Form 5300 to file these documents.
  2. Make sure the formula is "definitely determinable".
  3. Include examples of the calculations for the 401(a)(4) tests with your Demo 6.
  4. Remove the failsafe allocation language. (See document Section 2.3.3)

NOTE: This will require you to amend the plan in any year that you fail the necessary tests.

ADMINISTRATION SYSTEM CHECKS

Why enter dates of participation manually? You will save valuble time by allowing the system to calculate participation dates. Entry Date and Eligibility Date work together to determine when an employee can participate. If a participant meets the eligibility requirements on or before the Eligibility Date, then he/she can enter on the next Entry Date. If you are entering participation dates, manually, try changing the Eligibility Date on screen 10 and the Entry Date on screen 11. Not getting the desired contribution amount? Check that the formula on screen 13 matches your plan document. Once you have verified the screen entries match the document, you should review the Contribution/Benefit Overrides screen 31. An entry on screen 31 will override the formula defined on screen13. The next step would be to check the employee account for any overrides. If there is an amount entered in the account, it will override screens 13 and 31.

ADMINISTRATION TIME SAVER

You can save some time when you are setting up new plans on the system by changing the default file to match your company entries. Changing the entries on the following screens will save the administrator's time spent changing the same field on every plan they create!

 

 

The DATAIR News strives to provide our customers with valuable informatioin about DATAIR software, services, and the pension and benefits industry. Reader contributions are welcome. Contact sales@datair.com for more information.


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