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Prepared for Springfield R-XII School District
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Retirement Manager provides plan participants with an aggregate cross-vendor view of
their retirement savings and access to educational articles and financial planning tools.
Cross-vendor disbursement compliance is provided for loans and hardship withdrawals
in addition to a suite of online retirement plan administration reports.
Loan and Hardship Withdrawal Monitoring (Applicable to 403(b) and 457(b) Plans)
Retirement Manager loan and hardship monitoring is based on an electronic feed from
vendors. It provides the front end compliance tool needed to help coordinate plan
compliance procedures across all vendors. Hardship withdrawal and participant loan
activity is tracked across all eligible plan types and vendors. The current loan and
hardship withdrawal data is submitted by the vendors via a file sent using a secure
(FTP) transmission.
When a participant wants to apply for a loan or hardship at the eligible plan vendor of
their choice, they request a loan or hardship eligibility certificate from Retirement
Manager as their first step. The eligibility certificate is then presented to the vendor
approving the distribution. With loans and hardships, the employee relationship with
the current vendor will not change. Loan and hardship requests are processed using
administrative procedures for the current vendor. A link to plan vendors will be
provided on the Retirement Manager Website.
Retirement Manager provides the plan sponsor with plan-level loan and hardship
withdrawal reports to assist in the monitoring of participant loans and hardships
against Internal Revenue Code (IRC) limits.
Retirement Manager will monitor hardship withdrawals as reported by plan vendors on
the data sharing SPARK file to systematically send a stop contribution in the feedback
file to the plan sponsor based on the effective date of the withdrawal. The plan
sponsor will update their payroll system with that contribution stop. Retirement
Manager will send the plan sponsor a contribution restart notification at the end of the
six month suspension period.