What do I need to do?
As the fiduciary and administrator of this pooled employer plan (PEP), Fidelity will help manage many of the daily tasks associated with the plan.
We’ll handle things like providing ongoing data and contribution monitoring and helping keep you compliant with the plan.
You’ll manage things like updating your employees’ contributions every pay period* and providing us timely and accurate data about your employees and your business.
We’ll always be in touch to let you know if you’ve forgotten something, or if there’s an issue you need to address.
*You can avoid this by working with one of our integrated payroll providers
Now that you’ve read the overview of what you’ll need to do, let’s explore the details.
Fiduciary & Fidelity
There are many roles of a fiduciary, such as:
- Bullet Manage the day-to-day activities according to the plan’s terms and ERISA statutory requirements
- Bullet Diversify plan investments
- Bullet Ensure participants (and the plan) are paying only reasonable expenses
- Bullet Carry out duties prudently
- Bullet Select and monitor service providers
Fiduciary requirements were created under a 1974 law called the Employee Retirement Income Security Act (ERISA) to ensure plan sponsors act in the best interest of their employees saving for retirement. ERISA established basic standards for employer-sponsored retirement plans, including protections for workers in those plans.
As the plan administrator and fiduciary, Fidelity will take on these tasks:
- Bullet Provide ongoing data and contribution monitoring
- Bullet Deliver required notices to all participants
- Bullet Prepare and file required forms to the IRS
- Bullet Oversee participant money movement
- Bullet Notify you if there are issues to resolve
- Bullet Help keep track of ongoing activities
With Fidelity, you’ll have a partner that acts in the best interest of you and your plan participants. In a traditional 401(k) many of the responsibilities would mostly fall to the employer. But because Fidelity is assuming the fiduciary role in this 401(k) plan, we’ll provide a meaningful shift of risk and administrative responsibilities so you can focus on what’s most important: your business.
We’ll monitor the plan and carry out many of the day-to-day operational responsibilities and investments duties. By helping reduce your administrative responsibility, you can be confident that the plan will be compliant with regulatory requirements.
Employer responsibilities & support
As part of your responsibilities in the Fidelity Advantage 401(k)℠ plan, you’ll need to:
- Bullet Hire and monitor Fidelity as the provider and fiduciary of the plan
- Bullet Monitor fees to ensure the cost is reasonable for participants
- Bullet Supply accurate and timely information on an ongoing basis
- Bullet Provide necessary information to support required year-end testing
- Bullet Work with Fidelity to communicate this new benefit to your employees
- Bullet Submit your employees’ contributions every pay period*
- Bullet Notify Fidelity of any changes to your corporate structure
- Bullet Manage your employee information (e.g., new hires, terminations, etc.) in PSW, our employer portal
*Exceptions may apply if your payroll provider is integrated with Fidelity.
Full integration with one of Fidelity’s integrated payroll providers means that your data will flow seamlessly between Fidelity and your payroll partner. This allows for automatic contributions processing and real-time employee data syncing.
We have a library of support materials available in PSW, our employer portal, to help with your responsibilities, including topics such as contributions processing, year-end testing obligations, and employee data maintenance. These help materials are provided in the form of videos, guides, and a Virtual Assistant (VA) so you can choose the type of assistance you’d like to receive and when.
We’ve simplified the plan so that you can do most of the tasks yourself and take all required action online in PSW, our employer portal. Our dedicated PEPs support team will always be available if you need assistance. Here are some ways to connect:
- Bullet Submit a Service Request in PSW
- Bullet Access the Virtual Assistant (VA) in PSW once you are live in our system
- Bullet Take part in informational webinars (when available) to learn about processing your contributions, etc., or to meet other employers participating in the plan