The following are summaries from questions asked at the above meeting.
1. What companies are involved in the processing for employee earnings deferrals and employer matching contributions?
DCS Retirement Services will consolidate into a single file the deferrals and matching contributions from all participating locations. Sovereign Bank will provide a lock box bank account to receive all payments. MassMutual will receive a transfer of the payments and the consolidated payment file and apply the payments to the participant accounts.
2. Does the check get sent to the same place as the earnings deferral and employer match file?
No. The check from the parish will go to the lockbox account at Sovereign Bank. The Diocese will provide you with the account number and mailing address. You can also arrange for Automatic payment from your parish account. The earnings deferral and employer match file will be uploaded securely via the internet to DCS Retirement Services.
3. Does the parish match go with the employee deferral?
Yes. Both percentages are paid at the same time in order that they can be invested according to the employee’s choices.
4. What if we use a payroll company?
You just let them know what the amounts for deduction will be and they will be able to withhold the money. Think of it the same way as how you handle the employer amount on FICA.
5. Does the payroll company or the parish upload the file to DCS?
You must coordinate these items with your payroll provider.
6. Can we process retroactively to Sept 1 if the employee wants it? Or what if we have been holding deferrals since Sept 1?
You can defer retroactively if they authorize it. When you do your first upload to DCS you can either do one for each week of payroll, or process them as a single batch. It will be your choice.
7. How will we get notified of the final process so we have step by step instructions?
A “flow chart” with step by step instructions will be posted online and sent to each parish in the mail on Sept 27. The online version will have the account details blocked but you can call into the Office of Fiscal Affairs for that information if your copy does not arrive in the mail.
8. What happens to the forfeited parish match when an employee leaves who was less than 100% vested?
The parish can apply that amount to future matching contributions and/or administrative expenses. The money cannot be “returned” to the parish as cash.
9. What are the administrative expenses?
We do not have a specific amount yet because the accounts are not yet setup, but given the total volume and the streamlined process using DCS to upload the file, expenses should be minimal. When more details are available after we go LIVE in mid-October, we will have more information to share on this.
10. Do we need to verify anything after upload?
You will get a statement from DCS and periodically (your choice) you should spot-check to see if the correct amounts are being withheld and applied.
11. What if any employee works at 2 different parishes or institutions?
The COMBINED hours are used to qualify the person, even if the hours at each individual place are below 1,000 hours per year. Each institution (parish, school, etc.) should pay its share when each is processing a payroll check.
12. Does the employee deferral of earnings have to be a percentage?
Yes. And it needs it to be done in whole numbers – no fractions.
13. When and how can employees do a rollover from their previous 403b account?
AFTER October 15, they can contact MassMutual directly and ask for a representative to assist them personally. Each person’s contract differs and the MassMutual representative will assist them through what is referred to as a concierge service.
14. What happens to the Money Purchase plan money from MassMutual?
It will display on the new statement. The investments used in the past are being mapped, managed by a new investment manager with a similar investment strategy, to the new investment menu. The employees can change their investment choices as they did in the past by going online to their account AFTER Oct 15.
15. What are the eligibility requirements for an employee to participate in the new 403B?
Basically, an employee who works 1,000 or more hours per year is eligible. You should test to determine if part-time or seasonal employees will meet the 1,000 hours requirement. There are no age limitations. Student and non-resident alien employees are excluded from participation.