Pacific Retirement Plans (PRP) is a consulting firm that specializes in all types of qualified retirement plans, including pension, profit sharing and 401(k) plans. PRP will provide a flexible, customized plan that fulfills the needs of the employer such as maximizing the benefit for the owner(s) and/or helping reduce testing problems. (rather than a "one-size-fits all" plan) Our stock-in-trade is working with the employer's CPA's to help maximize the use of the plan as a tax planning tool.
The employer requires recordkeeping and consulting for the plan. Recordkeeping is mostly a mundane function which is best handled by the custodian of assets due to their economy of scale. Consulting requires a knowledgeable and experienced fee for service TPA that can evaluate complex rules and regulations and effectively design and communicate a customized approach that fulfills the employer's requirements.
PRP has knowledgeable, professional staff with years of industry experience and credentials (EA, CPC, QPA, QKA), including staff members that are licensed to represent the plan sponsor during an audit before the IRS/DOL. Most of the staff has obtained or is in the process of working on industry-specific credentials sponsored by the American Society of Pension Actuaries. This educational and credential program will ensure that our staff is knowledgeable and competent in all aspects of qualified retirement plans.
PRP can provide objective, flexible and knowledgeable advice, consulting and administration services to plan sponsors at a competitive price.
PRP derives 100% of our revenues as a fee for service business and not from selling assets. Therefore, it is in our best interest to provide quality service and establish long-term relationships with our clients. This also provides us with the independence to objectively provide advice that best fulfills the needs of the client and not advice beholden to selling an investment product for a commission. Providing quality service to our clients is our primary business and not as an afterthought or condition of a sale.
We believe that an unbundled retirement plan that utilizes a TPA like PRP and a separate custodian for assets provides the employer with the flexibility to select from a wide variety of plan options and make specific plan changes, as necessary. The employer does not have to choose a one-size-fits-all retirement plan that requires the whole plan to change if the employer is unhappy.
Small and medium size employer plans have specialized consulting and service needs that are best served by a knowledgeable TPA. Large companies can afford to hire a staff specialist but small and medium sized employers must rely upon knowledgeable service providers. Small and medium sized companies tend to have more compliance and testing problems due to their smaller size and concentration of ownership. These problems must be properly addressed by a service provider who must decipher complex government rules and effectively communicate complex compliance issues to the employer. Many bundled providers concentrate only on administrative functions and do not provide consulting or advice for the plan's fiduciary.
PRP is a dedicated fee for service business so all our revenues are generated from fees charged to clients, which are deductible business expenses, and not generated from plan assets. Our fees are very competitive in comparison, if you take into consideration that some TPA's and bundled providers receive significant revenues from assets through complex revenue sharing agreements. If the employer would like a lost-cost service provider then they should also consider the level of service, assistance, competency of the personnel & options available from the provider. The lowest-cost provider will not provide the same level of service and innovation as PRP and will rely upon the employer to provide more work.
PLAN DOCUMENT: We can design a plan that increases the allocation of any employer contribution to the owners or key personnel and/or reduces the allocation of employer contributions to transient, part-time employees. A plan document with class-based, age-weighted allocation formulas may increase the allocation of employer contributions to the owners or key personnel, based upon the employer's demographics.
A plan document with year-end, hourly and vesting requirements that participants must fulfill in order to receive an employer contribution from the plan, may lower the cost of the employer contribution and may increase the share allocated to the owner. The cost savings in the employer contribution may equal or exceed the "savings" from using other "cheaper" documents. Other cheaper, "one-size-fits all" plan documents do not have these provisions because they make the plan easier to administer and cheaper for the TPA but require the plan to provide employer contributions to transient, part-time employees or those employees not employed at year-end.
Longer eligibility provisions and different ADP testing methods may reduce the employer cost than more expensive, fully vested safe-harbor 401(k) plans or QNEC contributions. There are up to eight different ADP testing methods that we will use to help the HCE's maximize their contribution to the plan. Also the use of different types of discretionary employer contributions along with 401k deferrals may increase the owner's allocation of employer contributions in the plan and reduce the allocation to other employees.
PRP provides a variety of actuarial, consulting and administration services for qualified retirement plans. Please contact us for more information