Introduction... 401k Enginuity is licensed annually to Plan Providers for a fee based upon two components: the number of plans supported, and the number of eligible plan participants within these plans. There is also a one-time 401k Enginuity system setup fee that covers installation and customization to the Provider's specifications  (see Customization for options and details). • How a Provider uses 401k Enginuity — as a self-service center for clients to run their own 401k plans, as a full-service center for Provider personnel to run clients' 401k plans, or as a concurrently-operating combination of the two — in no way affects 401k Enginuity licensing fees. • Any asset-based fees or investment commissions generated via 401k Enginuity are completely the Provider's business, and the Provider's to keep or distribute. 401(k) Enginuity is paid only the fees listed below, and does not share in the Provider's asset-based compensation.  • A licensed Provider sets and retains all administration fees charged to its clients. (401k Enginuity has extensive billing flexibility; please go to 401k Enginuity Features: Creating and Communicating Fees for an overview.) • 401k Enginuity can be licensed to service any number of 401(k) plans, with any number of plan participants. There is no capacity maximum, owing to 401k Enginuity's designed-in, enterprise-caliber scalability. back to top
	Introduction
	Be Competitive
	The ASP Advantage
	401k Enginuity Pricing Specifics
	ESP: Enginuity Support Program

Be Competitive... As a Plan Provider or financial advisory firm, 401k Enginuity enables you to be VERY competitive in the 401k marketplace, particularly within the small business 401k market. According to government statistics, nearly 80% of U.S. businesses with 100 or fewer employees do not offer a 401k plan, primarily due to the plans' costs. • With 401k Enginuity's average wholesale (i.e., cost to you) price as low as $300 per plan and $25 per participant per year, a 20-person plan branded as your own and featuring your investment lineup costs you only $800 annually. At this low wholesale price you can retail the plan at a VERY competitive price with a high profit margin, and continue collecting renewal fees year after year. • 401k Enginuity's wholesale cost coupled with its automated and self-service administration capabilities assures your firm high margins, recasting administration fees from a break-even proposition to a true profit center; the size of that profit center is yours to determine. • 401k Enginuity means you offer a complete, per-client-customized 401k via your firm’s website, thereby leveraging plan sponsors' and participants' weekly visits into new sales opportunities also offered within that website. Please go to 401k Enginuity Key Benefits if you are unfamiliar with the inherent flexibility 401k Enginuity affords 401k operations. back to top

The ASP Advantage... 401k Enginuity is run off-site as an ASP. ASP stands for Application Service Provider, and is essentially a third-party data processing business that both hosts and manages web-based software applications for companies that do not want to run the software themselves. With 401K Enginuity's ASP solution, you can offer the power and affordability of 401k Enginuity, branded as your own, and available to through your firm’s website.  •401k Enginuity's ASP solution means your plan sponsor customers (and their employees) can securely access your custom-branded version of 401k Enginuity from your firm’s website, from any point on the globe, around the clock, every day of the year. •Our ASP facility runs 401k Enginuity for you, with consistent 24/7 reliability. We handle the data back-ups, and maintenance of your branded version of 401k Enginuity. You pay for usage only, and avoid the on-going costs associated with maintaining software in-house, including staffing, hardware, and software upgrade expenses. The advantages of 401k Enginuity distributed via ASP on behalf of the Plan Provider include: • Quick customization and branding of 401k Enginuity to the Plan Provider's specifications • Quick implementation and introduction of the Provider's version of 401k Enginuity in the marketplace  • No on-going computing hardware and software expenses or system upgrades • No labor overhead for running and maintaining 401k Enginuity in-house • Industrial-caliber Internet security and reliable, professional technical support 24/7 • 401k Enginuity has no maximum capacity owing to its enterprise-caliber scalability.  • 401k Enginuity ASP licensing fees in no way depend on whether a Provider uses 401k Enginuity to enable clients to run their own 401k plans or to interact with Provider personnel running the plans (or both) nor on any fees the Provider sets for its clients.  back to top

401k Enginuity Pricing Specifics: 401(k) Enginuity is a low-cost, open architecture ‘end-to-end’ 401(k) outsourcing platform and service geared to needs of Plan Providers, including TPAs, and financial advisors. 401(k) Enginuity includes: • Very low cost to setup and maintain.  • Branded, custom website with secure Plan Sponsor , Plan Participant, Plan Provider and Plan Advisor Gateways. • Special secure Provider Gateway, proving a detailed, real-time overview of clients’ daily activity. Print reports and perform compliance testing at the click of a mouse.  • Special secure Advisor Gateway, which allows the Plan Provider’s lower level employees to perform many routine operations, including look-up and report writing functions. Unlike employees with access to the Plan Provider Gateway, plans cannot be set-up nor investment transactions initiated. • Access to unlimited selections of no-load mutual funds (with NO hidden fees or charges). Any revenue generated from plans' assets are the sole property of the Plan Provider or financial advisory firm, not Pension Systems Corporation.  • Custody of plan assets at top-tier custodians such as TD Ameritrade and Charles Schwab. • Management of purchases, sales and distributions via secure encrypted e-file interaction with custodian(s) performed after market close by Pension Systems Corporation.  • Prototype plan document preparation and ongoing mandated amendments available on a plan-by-plan basis for a slight additional fee per plan. • Technical support for plan sponsors, including annual tax form preparation assistance, on a plan-by-plan basis for a slight additional fee per plan. • Secure access to value-added investment advisory services such as Mastery Point, Clear View, and Financial Engines  • At the discretion of the Plan Provider or financial advisor, both Pension Systems Corporation and the asset custodian can invoice the 401(k) plan sponsor directly for service. Plan Providers and financial advisors can bypass the responsibility for collecting recordkeeping or custody fees, or handling plan contributions or distributions. I. One-Time Set-Up Fee Per Separate Plan Installed on the Plan Provider’s Custom Platform*  • New plan setup fee (including plan document preparation): $500. • Takeover plan setup fee (including plan document preparation): $500 plus $75/hr II. Reoccurring Annual Fee Per Separate Plan Hosted on the Plan Provider’s Custom Platform • $300 per plan, plus $25 per-eligible participant. Running a custom website and plan platform for a Plan Provider, Pension Systems Corporation requires a minimum quarterly fee of $2,000, which is off-set by the annual plan and annual participant fees paid to Pension Systems Corporation. This minimum quarterly fee is NOT an additional charge, but a dollar-for-dollar offset. This minimum quarterly charge can be met, for example, with as few as 10 plans with an average head-count of 20 participants per plan ($300 X 10 plus $25 X 200 = $8000 per year = $2000 per quarter)  Setting up a new 401(k) plan on the Plan Provider’s custom platform is economical and straight-forward. The one-time setup fee for takeover plans is higher than the setup for new plans, because of the complexities involved in converting an existing plan’s historical data for inclusion in our database. Pension Systems Corporation has developed a number of easy to use software programs that simplify the data conversion process. Plan Provider (TPA, Advisor, Payroll Service Provider, etc) pays a one-time website branding fee of $1000 to setup and brand a custom website for its plans. This branded website is linked to the Provider’s existing website, so that sponsors and plan participants can login to the Provider’s 401(k) directly from the Provider’s website. The custom website we build for the Plan Provider is SSL encrypted and password-protected. The Plan Provider’s designated asset custodian (i.e. TD Ameritrade, Matrix, Schwab, etc) typically charges approximately $400-$500 a year for each separate plan on the Provider’s platform. These fees are negotiable, and based upon the plan’s size and holdings asset s. It is important to note that Pension Systems Corporation does not receive or retain any portion of these, or any other custody or asset-based fees paid by any source. All commissions and asset-based fees generated by the Provider’s plans are either returned to the plans to reduce their ongoing costs, or paid-out directly to Provider. back to top

ESP: Enginuity Support Program Non-technical web-based and "help desk" customer support for 401K Enginuity users, be they plan provider, plan sponsors, or plan participants, is available through the innovative Enginuity Support Program ("ESP"). ESP offers customizable levels of customer support, each geared to the needs and budgets of the users. Free services include "24/7" web-based "self-serve" help. Alternatively, fee-based person-to-person help desk customer support is available, with usage charged on a per-incident basis. Charging users "per incident" for "live" help insures that each plan provider pays only for its own usage, and is not subsidizing live help desk support used by less efficient competitors. ESP adapts quickly to an ever-changing business environment, and options of ESP are several. Example; a plan provider that maintains a dedicated in-house staff to address the support needs of its client plan sponsors and plan participants can bypass ESP help desk, yet keep all ESP's free self-serve functions activated, thus reducing staff workload. In another variation, a plan provider can use ESP help desk to augment its support staff--a viable alternative to hiring more employees as the provider's 401(k) business grows.  To save money a plan provider may choose to rely solely upon the free web-based support resources, and avoid help desk costs all together--relying exclusively upon the quality and completeness of on-line self-help components. Using self-help resources exclusively is not as far fetched as it may sound. It has been our experience that most 401K Enginuity and pension issues can be resolved quickly (and at no cost) though ESP's battery of "self-serve" resources. Examples include: "how to..." instructions, pension regulations, guidance in matching and vesting, loans and distributions, plan compliance testing, investment sections, plan amendments, and much more. New entrants to the 401(k) plan provider marketplace can avoid the expense and distractions involved in organizing and staffing an in-house pension support department, and instead rely upon ESP to address the support needs of their clients. ESP's Free On-line Customer Support ESP's free customer support includes easy to use "context-sensitive" HELP embedded in all 401K Enginuity screens. This HELP feature is accessible 24/7 and contains information germane to the screen in which it resides, and it's content is directly relevant to what the user is viewing at that moment. Additionally, a comprehensive knowledge database, a powerful search feature, and well-researched "self-help" FAQs are accessible via hyperlinks embedded within each 401k Enginuity screen. Depending upon the role of the user (i.e. plan provider, plan sponsor, or plan participant) the embedded hyperlink connects the user to only the most relevant sections within the knowledge database, making a search for answers quick and easy. Navigation is a breeze, and these free self-help resources are always "open for business." For our many years experience in the 401(k) arena we know the key concerns and issues confronting plan providers, plan sponsors and plan participants. From our experience with PC-based 401(k) Easy we've learned that most 401(k) issues can be addressed and resolved quickly and efficiently using "self-help" resources powered by our evolving knowledge database. This database keeps getting better over time because it's continually updated with fresh content geared--and written--for the lay public. ESP's Fee-Based* Customer Support • Two-hour telephone/interactive web demonstration and training session for plan provider or plan sponsor personnel running 401k Enginuity: $200 per session, money-back satisfaction guarantee. • Person-to-Person Help Desk Customer Support: $35 per incident, money-back satisfaction guarantee. • Priority Person-to-Person Help Desk Customer Support: $100 per incident, money-back satisfaction guarantee. back to top

 

			SUPPORT LEVELS	PLAN PROVIDER	PLAN SPONSOR	PLAN PARTICIPANT
		I.	Online context-sensitive HELP available from all Plan Provider, Plan Sponsor, and Plan Participant Gateway User Interfaces	included-no extra charge	included-no extra charge	included-no extra charge
		II.	Online FAQ and SEARCH of three separate databases, each geared to the needs of the plan provider, plan sponsor, or plan participant.	included-no extra charge	included-no extra charge	included-no extra charge
		III.	Telephone Support by 401k Enginutiy Specialist -- 24- hour response -- satisfaction guarantee	$35 per incident	$35 per incident (suggested retail)	$35 per 15-minuite consultation (suggested retail)
		IV.	Priority Telephone Support by 401k Enginuity Specialist -- 2-hour response --satisfaction guarantee	$70 per incident	$70 per incident (suggested retail)	$70 per 15-minuite consultation (suggested retail)
		V.	Telephone Training by 401k Enginuity Specialist -- satisfaction guarantee	$100 per hour	$100 per hour	N/A
		*All charges paid by credit card only.				back to top

 

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