You are a business-owner or employer sponsoring an ERISA qualified retirement plan or plans for the benefit of your employees. For one reason or another you are not satisfied with some aspects of your plan.

1. What are the reasons motivating you to consider a change?
    
2. Have your plan's goals or objectives changed?
    
3. Are you looking to offer a more competitive retirement plan to attract and retain good employees. 
    
4. What changes would you like to see made to your current plan or would you prefer starting a new plan?
    
5. Working with our firm, you will be working with a team of season professionals specializing in ERISA Employer Sponsored Retirement Plans

Our firm is guided by its owner Charles Klumpp a 3(21) Accredited Investment Fiduciary and 3(38) Accredited Investment Fiduciary Analyst. He is also Chief Compliance Officer of Pacific Pension Advisors an affiliate of Pacific Financial Advisory Group LLC. By written agreement, the employer as plans sponsor can shift their investment and fiduciary responsibilities to Charles F. Klumpp LUTCF, AIF, AIFA. Mr. Klumpp then assumes the role of Investment Manager. However, he and the plans sponsor or steward will jointly evaluate and select the plans lineup. He will then fulfil his duties as Investment Manager by following a document process of due diligence. This includes managing and monitoring performance of each investment, periodic reviews of each fund’s manager, benchmarking, and make available financial literacy education for all plan participants. He will also coordinate with Plan Administrator and Record-keeper.    

Once you decide to either make changes or switch your plan, we work with you or your retirement plans committee to prepare a Request for Proposal (RFP) (some small plans may not need an RFP). This is where you outline what you would like to see in your new plan from each service provider. Next you send out invitations from a list of qualified plans service providers to see who is interested and can accommodate the parameters you laid out in your request. After receiving proposals from participating service providers, you and our firm perform a side-by-side comparison and narrow the list down to the top two. Each provider will include a 408(b)(2) Disclosure breaking down their fees for each service they will provide.

GENERAL

Switching your Employer Sponsored Retirement Plan to different providers can occur any time during the year and usually takes 50 to 75 days. There are no restrictions on what time of the year you can transfer your plan. However, doing so at the end of the year may require closer coordination because some people take vacation time during the holidays.

Steps to transfer your company's retirement plan or plans:

1. Your advisor, Third-party Administrator (TPA) and Recordkeeper are now ready to begin the steps to transfer your current plan to the new plan. Your team is in place and ready to coordinate the transition.
    
2. You and your advisor have worked closely together in framing your new retirement plan design. This includes your investment lineup and contribution budget. There is also “The Balance by Fund Report” that contains information on dollar amounts for each separate investment fund in the company's retirement plans i.e., Profit Sharing 401(k) etc.
    
3. Now it is time to notify all enrolled employees and any retired employees about the upcoming changes. It is also time to give proper advance notification to each of the current plans providers that you are terminating their services (usually 30 day notice).
    
4. There is a blackout period where no account adjustments can be made by any plan's participants. The blackout period usually lasts between 14 and 21 days. Your TPA will initiate the paperwork that starts the transfer in motion. Completing the transfer to your new providers from start to finish, generally takes 45 to 60 days.
    
5. Educate and re-enroll eligible employees. An initial presentation about the new plan should be held on site or other appropriate venue. It could also be a combination Zoom Conference. There will be Information about the new plan with brochures, investment funds materials including prospectuses. There will also be information about a new employees retirement plans website.
    
6. Provide any outstanding information required to complete conversion and receive final conversion records from prior providers.
    
7. Notification to the Plans Sponsor. This is usually the employer and other Financial Professionals being notified that the asset conversion is complete, and assets have been transferred to the new plan safely and securely.

In the event plans sponsor changes their mind and decides not to transfer their current plan but has completed the Request for Proposal (RFP) and received a proposal, this then will usually satisfy the Department Of Labor's (DOL) periodic plans review.

For other ERISA qualified plans such as Cash Balance Plans, 403(b) Tax Deferred Retirement Plans, Defined Benefit Pension Plans, and Fully Insured 412(e)(3) Defined Benefit Pension Plans, please contact us at: www.pacificfinancialadvisory.com.

We look forward to helping you design a plan that meets your company's objectives and provides you and your employees a plan that you can all be proud of. Your plan follows ERISA and DOL compliance guidelines.

Cordially,

Charles F. Klumpp, CCO, LUTCF®, AIF®, AIFA®

This is a general guide on how to transfer your current  qualified retirement plan to a new plan. Pacific Pension Advisors and Pacific Financial Advisory Group LLC do not give legal or tax advice.  

Let's Get Started

Schedule an Introductory Meeting