Not-For-Profit Plans: Plan Services
Overview
A Not-For-Profit plan lets employees save for retirement by reducing current salary on a before-tax basis. It can be used with profit-sharing, money purchase, Defined Benefit, and Nonqualified plans.
Spend time making a difference, not managing your retirement plan
Our team of dedicated not-for-profit retirement specialists can work with you and your financial professional to help create an optimal plan design and enhance your retirement program with services and efficiencies to fit the needs of your administrative staff and employee populations. Combine this personalized service with an impressive array of investment options, and that's one great value from a company with over a century of financial expertise.
Delivering a broad range of services
We take a holistic approach that helps integrate your retirement program with services that help to reduce your administrative burden. This includes:
Plan Sponsor Services
Managing your retirement program is only one of your many responsibilities. It is important the solution you choose lets you focus on the needs of your employees while making the most of your time.
Administrative services
We make providing a retirement program easy with individualized attention that includes:
- Daily updates to records
- An easy program to distribute benefits to participants
- Combined plan services to simplify administration across all retirement plans
Compliance services
We pay special attention to compliance details. We provide government forms ready for your review and signature and the information your auditor needs for a limited scope audit to help keep your retirement plan in compliance with government regulations.
Beginning in 2010, ERISA 403(b) plan sponsors will face the same financial reporting and auditing requirements as 401(k) plans. You can use the following samples to help ease into the new requirements:
- 2008 Life Count Package: View a sample package that helps determine if a plan is large enough to require an audit.
- Audit Package: See a snapshot of the data we provide to help with future audits.
- Form 5500 Sample Packet: Get familiar with the type of information you will need to verify and see what missing data you may need to provide for a full Form 5500 report.
Participant Services
Your employees may not fully understand, appreciate or take advantage of your organization's retirement program.
Unique education program
We offer a unique education program, known as My Principal® Edge. This program uses three strategies:
- Multiple approaches - meaning that we use a variety of methods to stay in contact with your employees.
- Action-oriented - we motivate employees by focusing on specific actions.
- Personalized - we look at the employee’s specific situation to help them take action.
Making it easier to take action
Your employees will also have access to automated solutions, including:
- Easy enrollment online, by telephone or mail
- Automatic enrollment for participants who meet your retirement plan's eligibility requirements
- Automatic salary deferral increases
- Target date investment options
Other solutions to help employees plan for retirement
To make your retirement plan successful, you not only need an effective enrollment and education program, but also a variety of solutions for employees to consider, so they can meet their changing priorities. These services can include:
- An exclusive tool that helps participants assess how close they are to meeting their retirement goals and provides a personalized timeline with action items to complete over the next 12 months - access My Principal Edge Milestones® online tool now.
- An education strategy tailored to your organization - from targeted communications to online tools and more.
- World-class customer service that allows your employees to speak directly to our highly-trained specialists.
- One-on-one employee education meetings though Principal Retire SecureSM, if available to your retirement plan. (PDF: 829 KB)
Providing assistance to participants
Our comprehensive investment services provide the building blocks for helping employees participating in your retirement program plan for a secure retirement. To help you meet your fiduciary responsibilities, you can offer these additional services to your participants:
Solutions for the "Do-It-Myself" investor
Help participants determine their risk tolerance and decide which asset classes are right for them. Investor Profile Quiz (PDF: 249 KB)
A target date approach where participants choose a portfolio based on their expected retirement date. Principal LifeTime Portfolios (PDF: 284 KB)
Solutions for the "Do-It-For-Me" investor
Participants can consider a target-date approach, where they choose a portfolio based on their expected retirement date. Principal LifeTime Portfolios[3] (PDF: 284 KB)
We also provide professional asset allocation options where participants choose the mutual fund portfolio that most closely matches their risk tolerance. Russell LifePoints® Portfolios (PDF: 154 KB)
Participants who choose more risk-based investments may choose the SAM portfolio that most closely aligns with their risk profile. These are five strategically diversified portfolios that use a target risk-based approach. Principal Strategic Asset Management (SAM) Portfolios[3] (PDF: 245 KB)
The Principal Managed Account ProgramSM helps you manage your fiduciary responsibilities by providing personalized investment recommendations to participants. This program is a service provided by Ibbotson Associates and offered through Princor Financial Services Corporation's Registered Investment Adviser. Principal Managed Account Program[4] (PDF: 754 KB)
Consulting services
As your company grows and changes, your retirement benefits should keep pace. If you're merging or acquiring a company or looking for plan design assistance, we offer a full line of standard services with:
- A wide range of options for qualified and non-qualified retirement plans
- Choices in plan design, funding and expense options
- A proactive team approach to retirement consulting
- Insightful answers to technical pension-related questions
- Assistance with government compliance and testing
- Timely alerts to legislative changes
- Sample plan wording and employee plan booklets
We take a proactive, consultative approach to your retirement plan. Our consultants:
- Have expertise in understanding the intricacies of tax exemption, its effect on the non-profit culture, and ERISA and fiduciary complexities
- Are considered some of the most knowledgeable in the industry, with an average of almost 19 years of industry experience
- Have a broad understanding of overall retirement plan design and administrative services
- Have expertise on the Internal Revenue Code and Department of Labor regulations as they apply to plans for tax-exempt organizations
- Review retirement plan statement information
- Move account balances
- Get a loan (if available through your retirement plan)
- [1]
- The investment advice provided through the Principal Managed Account Program is provided by Ibbotson Associates. Access to the advice and securities and advisory products are offered through Princor Financial Services Corporation, 1.800.547.7754. Princor is a member of the Principal Financial Group, Des Moines, Iowa, 50392. To obtain a copy of Ibbotson Associates' disclosure brochure or the Princor Financial Services Corporation Disclosure Brochure and Privacy Notice, visit www.principal.com or call 1.800.547.7754 and speak to a retirement specialist.
- [3]
- Each Principal LifeTime portfolio and Principal Strategic Asset Management Portfolio is available through a Separate Account or Principal Funds mutual fund. Principal LifeTime Separate Accounts and Principal Strategic Asset Management Separate Accounts are made available through a group annuity contract with the Principal Life Insurance Company, Des Moines, IA 50392. May not be available in all states or U.S. commonwealths.
- [4]
- The investment advice provided through the Principal Managed Account Program is provided by Ibbotson Associates. Access to the advice and securities and advisory products are offered through Princor Financial Services Corporation, 1.800.547.7754. Princor is a member of the Principal Financial Group, Des Moines, Iowa, 50392. To obtain a copy of Ibbotson Associates disclosure brochure or the Princor Financial Services Corporation Disclosure Brochure and Privacy Notice, visit www.principal.com or call 1.800.547.7754 and speak to a retirement specialist.
Other Benefits
An 800 number with automated services
A toll-free, interactive voice response system gives participants the ability to:
Client Contact Center
We provide world-class customer service through the Client Contact Center. Participants can call and speak directly to multilingual retirement specialists who can answer their detailed questions about the retirement account.
Easy-to-read participant statements
These retirement plan statements help keep employees informed about the status of the retirement savings and investment performance. The statements have received the Seal of Excellence from DALBAR, one of the nation's leading independent financial services research firms.
Post-employment support
Our benefit counselors can help reduce your administrative burden by working directly with your former employees. We have numerous options available for your employees to keep their retirement savings working tax deferred when they are no longer a part of your organization.
Have questions?
Contact a local representative today for more information or to find a financial professional in your area.
Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained from your local representative or by contacting us at 1.800.547.7754. Please read the prospectus carefully before investing.
The value of the investment options will fluctuate so that when redeemed, shares or units may be worth more or less than the original cost.
No investment strategy, such as asset allocation or diversification, can guarantee a profit or protect against loss in periods of declining values.
