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2010 YEAR-END DATA COLLECTION. ESOP Processing Requirements Presented by: Maureen Hamblin, QPA, QKA Senior Consultant February 2011. AGENDA. Allocation Process and Timing Proxy Process and Timing ESOP Plan Restatements Automatic Cashout Processing Data Requirements Pentegra Website - PowerPoint PPT Presentation


<ul><li><p>AGENDA</p><p>Allocation Process and TimingProxy Process and Timing ESOP Plan RestatementsAutomatic Cashout Processing Data Requirements Pentegra WebsiteNext Year</p></li><li><p>ALLOCATION PROCESS &amp; TIMINGAll plans that do not utilize Pentegra Trust Company as their Trustee must provide Pentegra with the following, in good form, in order for Pentegra to begin the allocation process:Share Release Form2010 Census Data File2010 Trust Statements</p></li><li><p>ALLOCATION PROCESS &amp; TIMINGShare Release FormAvailable on Plan Sponsor site, under Administration, Reports/Downloads, Share Release FormComplete form and email to ESOP@Pentegra.com or fax to 914-694-6429This form is not required if Pentegra Trust Company is your Plan Trustee; confirm with your Account Representative if unsure2010 Census Data FileDownload from Plan Sponsor site, under Administration, Reports/Downloads, Census Data File Download2010 Trust StatementsEmail (in PDF format) to ESOP@Pentegra.com Plans that use Pentegra Trust Company as Trustee do not need to supply copies to Pentegra</p></li><li><p>ALLOCATION PROCESS &amp; TIMINGOnce all required items are received by Pentegra in good form, the allocation process may beginPentegra will determine eligibility within two weeks of receipt of required informationPlan Sponsor must provide written approval of eligibilityEligibility must be approved even if there are no shares to allocate</p></li><li><p>ALLOCATION PROCESS &amp; TIMINGWithin four weeks of Plan Sponsor approval of eligibility, Pentegra will provide allocation for Plan Sponsor approvalPlan Sponsor must provide written approval of allocationAllocation must be approved even if there are no shares to allocateWithin five days of Plan Sponsor approval of allocation, Pentegra will provide 2010 participant statements to Plan Sponsor for distribution to participantsOnce the allocation is complete, on-demand allocation reports and participant statements may be generated on the Plan Sponsor site</p></li><li><p>PROXY PROCESS &amp; TIMINGAll plans must provide Pentegra with the following, in good form, in order for Pentegra to begin the proxy process:Proxy Voting FormAvailable on Plan Sponsor site, under Administration, Forms/Manual, Proxy Voting FormComplete form and email or fax to your Account Representative Proxy process cannot begin until this form is receivedA single Proxy Voting Form may be completed for ESOP and 401(k) stock plans The Proxy Voting Form must be provided even if Pentegra Trust Company is your Plan Trustee</p></li><li><p>PROXY PROCESS &amp; TIMINGRequest for Pentegra Trust Company return envelopesApplicable only if Pentegra Trust Company is your ESOP trusteeApplicable only if Pentegra Trust Company will be tallying the proxy votes for your ESOPIndicate the number of envelopes requested clearly on the Proxy Voting FormProxy files will be provided two days after the record date</p></li><li><p>ESOP PLAN RESTATEMENTSThe IRS requires that qualified plans are restated according to a 5-year cycleIf your plan EIN ends in a 0 or 5, your plan is a Cycle E plan and the document must be restated no later than January 31, 2011 If your ESOP attorney has restated your ESOP document, you must provide Pentegra with the latest version of the document (electronic format preferred)Email to your Plan ConsultantInclude copies of latest IRS determination letter and trust agreement, as applicableIf you have not received a restated document from your ESOP attorney, confirm the plan is a Cycle E plan and the filing is necessary at this time</p></li><li><p>AUTOMATIC CASHOUT PROCESSINGAutomatic Cashouts depending on your plan, the Automatic Cashout limit may be $1,000 or $5,000Upon request, Pentegra will determine what terminated vested participants may be automatically cashed out in order to receive a distribution from the plan, without participant approvalOnce you provide written approval and direction for Automatic Cashouts to be processed, Pentegra will process distributions for these participants, either as checks directly to the participant or IRA rolloverNormal billing fees apply to these distributionsAutomatic Cashout determinations may not be made or processed until the 2010 annual allocation process has been completed and participant statements have been provided; Plan Sponsors must initiate the Automatic Cashout request</p></li><li><p>DATA REQUIREMENTSAll plans must provide complete data for current plan participants, as well data for any employees that have not met the participation requirementsThe Census Data File Download will include all data we have on file for current plan participants. Plan sponsors must provide data for any new participants as well as report the following for current participants each year:Termination DateHoursESOP Plan SalaryPercentage of Stock OwnershipOfficer StatusFamily Members</p></li><li><p>DATA REQUIREMENTSESOP with Pentegra 401(k) PlanA single Census Data File Download may be run for the ESOP and 401(k) plans Run the Census Data File Download for your 401(k) plan; this file will include a column for ESOP Plan Salary (usually after the last 401(k) column)ESOP Plan Salary may differ from Box 1 W2 compensation used for 401(k) ADP/ACP testing. IF your ESOP plan salary differs from Box 1, you must supply both types of salary.</p></li><li><p>DATA REQUIREMENTSESOP with no Pentegra 401(k) PlanIf you have any other plan(s) with Pentegra, but no 401(k) plan administered by Pentegra, the Census Data File Download must be run for your ESOP in addition to any data you supply separately for other plans</p></li><li><p>DATA REQUIREMENTSAdditional Items (as applicable)If your ESOP considers partial-year ESOP compensation, you must add it as a separate columnName this column Partial Year ESOP Plan SalaryIf an employee is excluded from your ESOP, but is not excluded from receiving your 401(k) plan matching contribution, you must add this as a separate columnName this column ESOP Excluded StatusUpdate Date of Birth and Date of Hire that are blank for any current participantsInclude Date of Birth and Date of Hire (plus all other applicable fields) for any new employees</p></li><li><p>DATA REQUIREMENTSESOP data should include all employees who were paid during 2010 (include any employee who received a W2 for 2010, even if they terminated or did not meet plan eligibility or allocation requirements)Hours should be included for all employeesIndicate 0 for less than 500 (do not leave blank)Include hours even if the employee terminated during 2010If a participant terminated in a prior plan year, but no Date of Termination is included in the Census Data File Download, update the Date of Termination</p></li><li><p>PENTEGRA WEBSITEAll Plan Sponsor representatives should have a username and password for the Plan Sponsor siteContact your Account Representative if you need additional loginsYou can confirm who has website access via the Contact Us section of the Plan Sponsor siteEach plan has a separate username and passwordMake sure you can accept messages from YourAdvantage@Pentegra.com to ensure the most up to date informationWork with your internal IT DeptContact your Account Representative</p></li><li><p>PENTEGRA WEBSITEwww.pentegra.comLogin/Plan SponsorAdministrationReports/DownloadsInstructions to Upload/Download Census Data FileCensus Data File DownloadESOP Processing RequirementsShare Release FormImportant Dates5500 Information and TimingAdministrative ReportsEmployee DataForms/ManualProxy Voting FormProxy Process Overview GuidelinesReliance Dividend ProceduresFile Uploads</p></li><li><p>PENTEGRA WEBSITEActivityDemographicsBasic DataAddressesLearning CenterAnnual LimitationsSAS 70 ReportContact UsPentegra Contact InformationPlan ConsultantAccount RepresentativeCompliance Analyst</p></li><li><p>NEXT YEARContact your Account Representative with any ESOP processing questionsIf your accountants require an estimated ESOP allocation for certain Highly Compensated Employees (HCEs), request from your Account Representative at least 30 days prior to due date.Email distribution requests (PDF format preferred)Contact your Plan Consultant with any ESOP plan design questions or changesPlan amendments are required for any plan changes (prior to effective date of change)Annual ESOP plan reviewYour ESOP Compliance Analyst will work with you on the ESOP Form 5500 and audit requirementsMost ESOP audit items are available for download from the Plan Sponsor and Reliance websites</p></li><li><p>NEXT YEAR</p><p>Plan Sponsors must distribute Summary Plan Description (SPD) to all participants, for any plans that have been restated. Plan Sponsors must distribute Summary Annual Report (SAR) to all participants upon completion of Form 5500Your ESOP is a valuable benefit! Educate employees about the plan via employee education webcasts or meetings</p></li></ul>