Boston Financial Eases Year-End Compliance Testing for Plan Sponsors
QUINCY, MA, December 18, 2006 -- Plan sponsors can now streamline their annual census data collection and validation process thanks to a new Web-enabled service offered by Boston Financial Data Services. The solution will make it easier for plan sponsors to meet IRS compliance testing deadlines for the 2006 calendar year and beyond.
Census data collection is a significant annual event for most plan sponsors. Every year, they must collect comprehensive participant data from their human resources and payroll systems and often complete a compliance questionnaire from their plan provider. The provider then performs required IRS compliance testing to ensure the plan is operating in accordance with regulations. The task of reconciling discrepancies between a plan sponsor's information and the information held by the provider is time consuming and often causes delays in the testing process. Plan sponsors must correct failed compliance tests by March 15 (for calendar year plans) in order to avoid tax-related penalties.
Now, through a private-labeled Web site hosted by the plan provider and serviced by Boston Financial, plan sponsors can review their annual census information and promptly detect-and commence correction of-any potential discrepancies. This preliminary validation can avoid many of the delays often encountered during compliance testing. The Web-based tool was developed by Boston Financial's technology partner, DST Systems, Inc., and provides real-time access to plan provider information housed on DST's retirement recordkeeping platform, TRACŪ.
"As a service organization, we focus on operational innovation to improve processes for our clients and their plan sponsors," explained Bob Regan, division vice president, Boston Financial. "With this technology, as soon as a plan sponsor completes the online annual compliance questionnaire, we can begin compliance testing. It streamlines the entire census validation and compliance testing process."
About Boston Financial Data Services
Boston Financial Data Services is one of the industry's premier outsourcing providers committed to servicing the retirement plan business and a leader in the mutual funds marketplace. Boston Financial is a joint venture established in 1973 between DST Systems, Inc. of Kansas City, Mo., and State Street Corporation of Boston, Mass. This joint venture has enabled Boston Financial's clients to utilize DST's industry-leading software and technology while benefiting from the institutional support and global reach of State Street.
###
Click here for more material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues on 401k plans.
This is a press release provided by the company or its representatives. 401khelpcenter.com, LLC is not the author of this release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
