Updated for EGTRRA!

 Helps Consultants, TPAs and employers work better, faster, for less cost

DATAIR’s PC-based Defined Contribution System is an integrated proposal, testing and administration package designed to help professional administrators who work with “DC” plans:

• Money Purchase Pension
• Profit Sharing (including cross-tested plans)
• 401(k) (including SIMPLE Plans)
• 403(b)
• 457
• ESOP
• Target Benefit Pension (Optional)
• Non-qualified

Special Advantages

• Automated data import for plan conversions, payroll file downloads, and linkage to daily valuation systems
• Dynamic screens that instantly suppress irrelevant fields and screens based on individual plan designs
• Special “speed screens” for easy data entry
• On-line, context-sensitive help screens and field explanations to reduce user training time
• Unlimited phone, fax and e-mail software and administration support included with support fee
• Free programs for conversion from many other recordkeeping systems
• Automated data transfer among other DATAIR systems to reduce data entry redundancy
• Newly enhanced optional Report Writer/Data Extractor for use with Windows-designed customized reports and statements
• Data Entry option to allow employers remote data inquiry/entry
• DATAIR Voice phone option for instant participant access to account and loan information

DC users include

• Third Party Administrators
• Accounting Firms
• Law Firms
• Insurance companies, agents and brokers
• Banks, S&L’s, Trust companies
• Investment funds, brokers and advisors
• Employers: corporations, partnerships, tax-exempts and governmental agencies

Price Discounts

DATAIR helps you control costs with some of the lowest license and support fees in our market. Prices are further reduced for the following:

• Plan Sponsors and TPAs with few plans
• “Carve-out” versions of the system:
  • Discrimination testing only
  • Proposals-Testing-Enrollment only
• Free multi-station and (LAN) support
• Multiple and telecommuter site licenses
• Upgrade to new Windows version

DC System Components

Proposals and Enrollment

• Side-by-side comparisons of alternative plan designs for the same employer showing contributions divided between highly and non-highly compensated employees. Plans may be compared with fixed costs or to maximize benefits for top employees. Results may be graphed using the included Microsoft Excel ™ workbook
• Individual employee projections of tax results and retirement accumulations, including funding with insurance products, for up to seven different salary reduction (401(k), 403(b) or 457) percentages. All federal and state income tax rates included)

Testing and Monitoring

Tests are based on annual contribution, annual equivalent benefit, and accrued-to-date equivalent benefit rates, with or without Permitted Disparity.

• Top Heavy analysis
• 415(c)
• Deductibility limits
• 401(k), 403(b) and 457 contribution limits
• 403(b) Exclusion Allowance and Catch-Up
• 401(k) and 401(m) tests (ADP, ACP) with suggested reductions and QNECs
• 410(b) coverage tests: Ratio Percentage and Average Benefit Tests; separately reported for 401(k), 401(m), and other contributions
• 401(a)(4) general test using allocation and equivalent benefit percentages or amounts. Uses midpoint between safe and unsafe harbor if 410(b) Average Benefit Percentage Test is passed. Option for rate grouping within 5% of a midpoint. Performs cross-testing
• Separately test Otherwise Excludable participants (not yet 21 with 1 year of service)
• Use retirement age or Social Security retirement age as Testing Age
• Test multiple plans together, including DB plans
• Option to limit Highly Compensated Employees to those over HCE Dollar Limit and in the top 20%
• Option to use Non-highly Compensated Employee’s preceding year ADP and ACP

Administration

Sources of Contribution

• Employer, subject to vesting:
• Employer, fully vested: including QNECs to include in 401(k) or 401(m) discrimination test
• Salary Reduction: 401(k)/403(b)/457, with option to indicate salary reduction as a percent or a dollar amount, by contribution period
• Employer Matching: Employer can match Salary Reduction, Voluntary, Mandatory contributions or any combination of the three. Matching can be graded up to four levels and be based on dollar amount, percent of compensation, years of service, or years of plan participation. Matching amounts may have upper limits expressed either as a percentage of compensation, a dollar amount, or both
• Employee Contributions: mandatory, and voluntary deductible (IRA) and non-deductible
• Rollover Funds
• Employee Loan Repayments

Allocation of Employer Contributions

• Automatic Minimum Top Heavy allocations
• Salary Proportion: dollar amount or percent of total compensation
• Integrated with Social Security: dollar amount or percent of total compensation
• Cross-tested formulas: age-weighted, super-integrated, new comparability, etc.
• Unit Allocation: dollar amount or percent of compensation allocated based on units of compensation, past service credits and future service credits
• Individual Integrated Formula (e.g., 10% of participant's compensation plus 5.7% in excess of TWB)
• Flat dollar amount per participant
• Dollar amount per hour worked

Features of Employer Contribution Allocation

• Option to calculate maximum contribution to highest paid employee at least cost to Plan
• Sole Proprietors/Partnerships - Automatic calculation of net income for owner-employees
• Options for Excess Annual Additions to be re-allocated, returned to employer, or put in suspense for future allocation
• Optional contribution allocation to terminees, retirees, deceased or disabled participants

Gains/Losses

• Enter either an amount or percent
• Enter ending balance (automatically calculates gain/loss)
• Allocates to all sources sharing an investment
• Allocation basis user defined and may be adjusted by a time-weighting factor
• Option for terminees to share in allocation of gains/losses, PLUS additional options for those with a break-in-service

Participant Directed Investments

• Up to 679 Accounts per participant
• Transfer capability between Accounts, either dollar amount or percentage
• Easy realignment of all Account Balances among various investments
• Reports dollars or shares
• Account definitions include CUSIP and Ticker Symbols for reporting and telephone response (see DATAIRVoice Highlights)

Vesting

• 0% for N-years, 100% thereafter; 2-20; 3-7; V% per year; 100% full & immediate; user-defined graded (customize your own)
• Service for vesting based on all service with employer with an option to exclude service prior to original effective date or prior to a certain age
• Option to have vested amount paid at Year of Termination; when break-in-service occurs; or left in the plan to be withdrawn at a later date

Allocation of Forfeitures

• Based on salary, contribution or beginning balance
• Reduce Employer Contributions
• Option to allocate forfeitures to new entrants, terminees, retirees, deceased or disabled

Retirement Provisions

• Participants can retire upon:
  • attainment of; the first day of month following; or
  • Anniversary Date nearest or following:
    • Normal Retirement Age, or
    • NRA with minimum Years of Service and/or Participation,
    • NRA not to exceed a Maximum Age with Minimum Years of Participation
• Provisions for Early Retirement based on age, years of service or participation

Pre-Retirement Assumptions & Death Benefits

• User-defined interest rate for projection of contributions to Normal Retirement Age
• Minimum and maximum corporate tax brackets to illustrate tax advantages of plan
• Death benefit can be defined as Account Balance Only, Policy Proceeds or Account Balance Plus Policy Proceeds
• Minimums and maximums for insurance ages and amounts
• Complete handling of Term & Adjustable/Interest-Sensitive/Universal/Whole Life
• Calculation of Face Amount based on a percent of Employer Contribution, Salary Reduction, Employer Matching, Employee Mandatory, and combinations thereof
• Calculation of reportable income based on PS-58 or ART rates

Post-Retirement

• Forms of payment: life-only, years-certain + Life, Joint & Survivor, lump sum, years certain and Insurance Settlement Option Tables
• Interest
• Mortality Tables with separate setback/set forward for males and females
• Loading for expenses

Processing Frequency

• User defined frequencies. Separate payroll and reporting periods can be easily defined
• System tracks period-to-date, year-to-date and plan-to-date contributions, gains/losses, forfeitures, transfers, distributions & withdrawals

Eligibility and Participation Provisions

• System determines employees eligible to participate based on Minimum Hours, Minimum Age, and Months-of-Service
• Participation Dates based on single entry (daily, monthly, quarterly, anniversary date nearest or following) or dual entry (first day of plan year and six months later, or user defined dates)

Reporting

Proposals and Illustrations

• Summary on Screen
• Plan Specifications
• Employee Census
• Schedule of Benefits
• Analysis of Cost
• Contribution Accumulation
• Financial Results (Tax Summary)
• Multiple Plan Limitations
• Contribution Report
• Limit on Deductible Contributions
• Policy Values
• Alternative Plan Design Comparisons
• 401(k) Illustration (for participants)

Discrimination Testing Reports

• 410(b) participation test - minimum coverage
• 401(a)(4) general test
• 401(a)(4) allocation and equivalent benefit percentages
• 401(a)(4) allocation amounts and equivalent benefit amounts
• 401(a)(4) cross-testing
• Non-discriminatory compensation - 414(s)
• 401(k) & 401(m) discrimination tests

Valuation Reports and Certificates

• Increases and Additions (Insurance)
• Top Heavy Test
• Account Balance Statement
• Share Account Balance Statement
• Adjustments to Account Balance Statement
• Vested Balance Statement
• Contribution Requirements
• Participant Certificate (9 different formats!)
• Announcement of Participation

Other Reports

• Employee Summary for 5500 (5500 lines 7 & 21)
• Employee Notes
• Summary of Insurance
• Universal Life
• Anniversary Notification
• 81-202 Comparability
• Reportable Income (PS-58)
• Age/Service/Earnings Analysis
• Salary History
• 403(b) Elective Deferral Report
• 403(b) Exclusion Allowance Report
• 1099-R (Summary, choice of print versions, electronic filing & 1096)
• Magnetic Media/Electronic Transmittal Form 4804
• Application for Filing Magnetically/Electronically Form 4419

Other Features

• Table Editor for viewing, printing & modifying pension tables for mortality, turnover, settlement option rates, ART/PS58 rates, etc.
• Custom generation of commutation factors, annuity tables, loan pay-back schedules, Social Security benefit illustrations, rates of return, etc.
• Passwords for system use, for specific plans or for levels of access

Hardware Recommendations

• Pentium 133 MHz; 16MB or more of RAM; 3.5" floppy disk drive; CD-ROM drive; 1 GB or more hard disk; HP LaserJet or compatible printer; Windows 95 or above required for some features.
• Compatible with numerous networks, e.g., Microsoft Networking, Novel Netware, Artisoft LANtastic, etc.