
WESPAC designs plans that meet the specific goals of sponsors, such as maximizing contributions to valued employees or encouraging full participation. Primarily focused on 401(k) plans, we also have broad experience in the design of profit sharing, money purchase, defined benefit, ESOP, and nonqualified, as well as 403(b) and 457 plans.
401(k) plans allow employees to elect or receive current compensation or have part of their compensation contributed to a corporate benefit plan or stock bonus plan on a pre-tax basis. Rollovers and employer match are additional features available.
Actuarially determined contributions allow employers to exceed the 25% of compensation limit for Defined Contribution Plans thus providing for expanded planning opportunities. These plans may be implemented along with a 401(k) or Profit Sharing Plan to benefit select groups of employees or to provide a cost efficient retirement income foundation for all employees.
The employer deduction limit is 25% of total compensation paid to plan participants exclusive of 401(k) salary deferrals.
With increases in fund mergers and changes in demographics and retirement patterns, we understand the importance of designing plans that meet participants' needs in a cost-effective manner.
At a time when employee demographics and expectations are shifting rapidly, we assist corporate clients with a broad range of pension, healthcare, and employee communications issues.
WESPAC's electronic data exchange capability keeps administrative costs low compared to traditional, paper-intensive recordkeeping. Beyond that, we can manage total plan costs - fees for investment management and trust custody services with revenue sharing from the 5,000+ no-load funds. We have negotiated favorable fee arrangements with several of the nation's most prominent trustees and institutional providers. In addition, our agreements with many investment managers give you the ability to explore low-cost passive funds, extremely low cost passive funds (including ETFs), and direct placement CITs, as viable alternatives to brand name mutual funds. These alternatives can lower investment costs by anywhere from 30 percent to 90 percent. For sponsors who prefer brand name funds, WESPAC takes full advantage of the fee-sharing arrangements that many of these managers have agreed to offer as a way of reducing administrative costs. Only WESPAC gives you so many ways to maintain cost control while improving service to your employees.
WESPAC's valuation and experience study systems are capable of handling even the largest and most complex plans. Our expertise includes the development of appropriate contribution rates and the ability to determine whether a fixed statutory rate can be reasonably expected to provide for future benefits. With our extensive experience in rate development and demographic analysis, we can help you conduct periodic reviews of all the assumptions underlying the valuation of your benefits programs.
With the IRS and Department of Labor increasing retirement plan audit activity, it's essential for sponsors to self-audit to assure compliance. Our consultants can conduct periodic compliance testing to ascertain that your plan satisfies all prescribed nondiscrimination tests. At the same time, we prepare governmental filings and provide independent auditors with the data they need to conduct annual financial audits.
Using state-of-the-art technology, WESPAC greatly shortens the time needed to analyze the effect of changes in contribution rates, actuarial assumptions and demographics on plan performance. Our models can be used to project the future funded status of defined benefit plans under a variety of economic scenarios.