As the Plan Administrator or Plan Representative, your enrollment responsibilities include:
1. Identifying the employees who are eligible to participate in the plan;
2. Providing the newly eligible Participant data via the Envoy Choice Portal;
3. Distributing the Welcome Letter, Summary Plan Description, and Personal Retirement Guide or Activate Guide to the newly eligible Participant; and
4. Setting up the Participant's contribution rate in your payroll system.
1. Review the plan's eligibility and entry date requirements in the Plan Document's Adoption Agreement and/or Summary Plan Description. The eligibility requirements for the plan are clearly outlined in both of these documents.
2. Identify the employees who have satisfied the plan's eligibility requirements. Remember that most 403(b) plans include dual eligibility.
3. Voluntary Contributions - the Universal Availability feature unique to 403(b) plans typically allows all employees to participate in the plan on a voluntary (elective deferral) basis upon hire. In some cases, certain exclusions may apply.
4. Employer Contributions - there may be additional service requirements and age requirements associated with the employer contribution portion of the plan. As a result, a Participant may be eligible for that part of the Plan that is funded with employer contributions at a date later than their initial date of hire.
5. Identify the applicable entry date for each newly eligible Participant. This is the first date that the voluntary salary reduction contributions and/or employer contributions can commence.
1. Include all employees (including those who are not currently active Participants) on the Comprehensive Payroll Data file utilized for contribution submissions.
2. The census data provided via the Comprehensive Payroll Data file will activate the Participant's ability to log onto the EWP using their SSN. The Participant login will then enable the newly eligible Participant to enroll into the plan using the online and highly interactive SmartPlan Interactive Guide.
3. Hand-key the newly eligible Participant's census information into the ECWP. This hand-key feature is helpful if a newly eligible Participant needs to be added to the system in between contribution submissions.
4. Go to www.EnvoyFinancial.com and click Account Login
5. Enter your username, password, and select Employer from the drop-down menu
6. On the navigation bar, click Employees and select Add/Update Employee from the drop-down menu.
8. Enter the newly eligible Participant's Social Security Number and then click New Employee.
9. Enter the following Participant data:
Date of Birth
Date of Hire
10. On the Web Access field, choose Select Default.
11. Click Submit.
The census data provided will activate the Participant's ability to log onto the Envoy Choice Portal. This Participant login will then enable them to enroll into the plan using Envoy's Enrollment & Review tool.
1. Provide Notice of Eligibility to the Participant. Communication tools designed to accomplish this requirement are available to you on the Envoy Choice Portal
2. Go to www.EnvoyFinancial.com and click Account Login
3. Enter your Username, password, select Employer from the drop-down menu, and click Login
4. On the navigation bar, click Reports and select Document Center from the drop-down menu. Then choose View Documents under the Select Forms section. Three important communication pieces should be distributed to each newly eligible participant.
5. Welcome Letter - the Welcome Letter is in Word format and should be copied and pasted onto your organization's letterhead.
6. Summary Plan Description - the IRS-required Summary Plan Description (SPD) is written in layman's terms and provides meaningful information about the plan to the Participant.
7. Personal Retirement Guide or Activate Guide - this educational piece has been customized for your organization's retirement plan and includes important information on the basics of investing.
8. Document the delivery of these documents to the Participant. In the event of an IRS audit of the retirement plan, you may be required to demonstrate that notice of eligibility has been provided to all newly eligible Participants.
9. Provide the Personal Retirement Guide or Activate Guide and the Enrollment Instructions to the Participant. Enrollment instructions are available to you, the Plan sponsor, on the EWP.
1. As a result of the completion of the Participant's online enrollment, the Plan Administrator or Plan Representative for your plan will receive a system generated email detailing the Participant's contribution elections. This notification will serve as the Participant's Salary Reduction Agreement.
2. Print a copy of this email notification and file it in the Participant's Human Resource folder. In the event of an IRS audit of the retirement plan, you may be required to provide copies of these Salary Reduction Agreement notifications for your Participants.
3. Set up the Participant's withholding elections in your payroll system. The elections will be either pre-tax (Traditional) contributions or after-tax (Roth) contributions. The elections may be expressed as a percentage of the Participant's compensation (i.e. 5%) or a fixed dollar amount per pay period (i.e. $50 per pay period).
Please email Envoy Financial if you have questions or need additional information.