Pencor Services

TPAs handle many aspects of employee benefit plans that many employers find either too technical or too time consuming to effectively administer. Pencor can and does provide just such outsourcing solutions. Refer to the lists below and to the left for a comprehensive overview of services Pencor provides.


  1. Compliance testing, including:

                   ADP/ACP nondiscrimination testing
                   IRC 401(a)(4) nondiscrimination testing
                   IRC 410(b) coverage testing
                   IRC 416 top heavy testing
                   IRC 402(g) limit application
                   IRC 415 limit application

  1. Allocation of discretionary employer Profit Sharing and Matching contributions

  2. Employer summary of participant accounts (for Trustee-directed plans)

  3. Preparation and e-filing of Form 5500 series, plus appropriate schedules

  4. Preparation and e-filing of Form 8955-SSA (if applicable)

  5. Preparation of Summary Annual Report for participants

  6. Safe Harbor notice for participants (if applicable)

  7. Required Minimum Distribution report

  8. Reconciliation of deposits and receivables


  1. Actuarial Valuation report, which includes:

                   Calculation of minimum contribution under IRC 430
                   Calculation of maximum deductible contribution under IRC 404
                   Calculation of recommended contribution
                   Summary of accrued benefits (Traditional plans)
                   Summary of Hypothetical Accounts (Cash Balance plans)

  1. Coverage test under §401(a)(26)

  2. Deliverable Benefit Statements
  3. Preparation of deliverable Summary Annual Report or Annual Funding Notice
  4. AFTAP certification


  1. Preparation of Pre-Approved plan documents (Volume Submitter format)
  2. Preparation of Summary Plan Description
  3. Preparation of administrative forms package, including

                   Deferral Election forms
                   Beneficiary Designation forms

  1. Preparation of required, periodic amendments

  2. Preparation of discretionary amendments

Retirement Independence by Design

Additional Services

Plan Design & Implementation
The selection of a retirement plan design and its implementation is a process that requires consideration of the employer's objectives, the employee demographics, and the constraints under ERISA. Pencor staff are experts in this process and will optimize a plan to suit almost any plan sponsor's needs. Pencor staff will:

  • Initiate a review of the employer's controlled group/affiliated service group status.
  • Design and implement a plan tailored to meet the needs of owners, employees, and the business while complying with the provisions set forth in ERISA.
  • Pencor s existing plan takeover process includes a review of the current plan provisions and recommendations about how to optimize the provisions of the amended document to fully meet the employer's goals and objectives.
  • Prepare plan documents and requests for IRS determination letters, as applicable, as required by the IRS.
  • Prepare the Summary Plan Description (SPD) that must be disseminated to plan participants in accordance with ERISA.

Pencor provides trust accounting for those clients who have assets held in brokerage accounts. This includes, but is not necessarily limited to accounting for:

  • Investment income (dividends, interest, capital gains, etc.)
  • Purchases
  • Sales
  • Expenses
  • Participant distributions
  • Reconciliation of contributions
  • Net Gains/Losses

Distribution Services
Pencor provides all required notices and forms for withdrawals from retirement plans. Again, this includes, but is not necessarily limited to:

  • Separation Distributions
  • Loans
  • Hardship withdrawals
  • In Service Distributions
  • Qualified Domestic Relations Orders (QDRO)
  • Required Minimum Distributions (RMD)

Smart Notice
Smart Notice is a printing and mailing service offered by Pencor, Inc. Smart Notice is offered as an ancillary service to Pencor s annual administration clients. It is not offered as a stand-alone service. Smart Notice allows the client to request that Pencor print and mail specific notices to plan participants. The intent of this service is to ease the client's administrative burden associated with furnishing participants the notices required under ERISA Title I (i.e. Summary Annual Report, Safe Harbor Notice, Annual Funding Notice). Clients may also request that Pencor distribute non-qualifying notices, such as the Blackout Notice or ERISA 404(a)(5).