Central Valley Support Services - Plan Services

What is the role of Central Valley Support Services (CVSS)

• Insuring the compliance of a 501(c)3 organization’s retirement plan is becoming increasingly complex. Numerous tax law changes are on the horizon. To address the total issue, CVSS has developed a system which includes employee education, calculating the Maximum Allowable Contribution (MAC) limit, monitoring contributions throughout the tax year utilizing our common remitting module and creating annual reports to the employees explaining their investment options and limits. Another goal is to empower the employees to be informed investors. Employee education is crucial to this process. The IRS has implemented numerous tax law changes. Most of these changes were effective 01/01/2009.

• CVSS is not affiliated with any investment product provider or their agents/representatives. We feel a conflict of interest exists if the administrator of a plan is also a provider of retirement products. Members and their employees are entitled to unbiased answers to the many questions that arise concerning their retirement plan. As a result, employees are more willing to ask questions because the information they receive is objective.

Common Remitter

• All funds are sent to the Service Providers within 24 hours of receipt. CVSS transfers funds electronically (ACH) to Service Providers that will accept funds in this manner. If the Service Providers require a check instead of ACH, the checks are sent the same day as the ACH. A complete audit trail is maintained throughout the system. One part of the audit trail shows the date of the transaction, amount, name of Service Provider and number of business days to clear CVSS’s trust account. This data is used in contacting a Service Provider when concerns arise as to the posting of a contribution into a participants account. CVSS does not combine the funds of one member with another Members’ employee’s contributions. If there are 5 Member’s employee’s contributions to process, there are 5 separate groups of transactions processed. We feel this is important in that it maintains the audit trail for each individual transaction. Employee contributions that are returned for any reason (account not open, account closed, etc.) are processed based on directions from the Member’s payroll department.

Maximum Allowable Contribution (MAC) Calculate Employee’s limits

• MAC limits are calculated annually. The MAC limit is monitored throughout the tax year to insure compliance with IRS regulations. CVSS will furnish a monthly report which projects when an employee will reach their MAC limit based on current contribution levels.

Internal Revenue Service Compliance

• CVSS monitors all applicable IRS law changes. The IRS has enacted the largest number of changes to the current tax law in over 40 years. The majority of these changes will take effect on January 1, 2009. Some of the proposed changes include:
• Plan Documents will be mandatory
• New rules governing Employee account transfers and exchanges between Service Providers
• Increased “Universal Eligibility” guidelines for Member’s employees
• “Meaningful Notice” mandates that the Members provide eligible participants with effective educational information which explains to the participant’s investment opportunities within the Member’s plan.
• Increased monitoring by the Members of their Employee’s loan repayments to their plan Service Provider.
• CVSS Members will have available to them Employee educational meetings which explain the options Employees have under the Member’s plan.

Salary Reduction Agreement Processing

• Salary Reduction Agreement (SRA) processing is available. This can be accomplished either by paper or securely online. If this optional processing is implemented, a file is created by CVSS after SRA information has been inputted by us and sent back to the District for import into their payroll system. This saves a significant amount of time for the District due to the fact that they do not have to input changes manually into their payroll system. When the payroll is processed, CVSS monitors the SRA changes and notifies the Member payroll department of any discrepancies.

Secure online access

• CVSS offers members secure online access to all employee records, which includes but is not limited to their census data, historical contribution details and Maximum Allowable Contribution limits.
  

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