Schwab RT August Release August 20, 2015

Speakers 

Ben Lee



Bailie Foss



Cathy Whisonant

Charles Schwab Advisor Services

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Agenda Participant Web Refresh SunGard WealthStation PlanAdvisor Early Trade Cutoff Rehire and Vesting Enhancements High-Priority Resolutions Resources and Upcoming Events Q&A

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Participant Web Refresh

Ben Lee

Charles Schwab Advisor Services

Refreshed Participant Web Experience What’s New New What’s •

•

Enhanced “Look and Feel” for Participant Web Improved font and layout automatically applied to all SRT web pages Simplified Flow for Auto Rebalance Option Matches format used in Online Enrollment

Best Practices

Aside from these format enhancements, no changes have been made to: •

Page content

•

Menu content or position

•

Skins colors and logos

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Participant Home Page (Gadgets)

After

Before

For illustration purposes only

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Participant Home Page (Option 1) Account Information Account Balance and Vested Account Balance if less than 100% vested;

Welcome & Messages Plan level greeting can be customized (3 – 4 lines) 3 types of messages -

3 system messages

-

Contribution information with direct link to Deferrals page

Up to 5 messages created from Plan Sponsor site with start date

-

# of messages from Financial Advisor with link to message board

Investment Elections Election Percent Summary chart with direct link to Investment Elections page

Your Portfolio Portfolio Percent Summary chart with direct link to Realignment page

YTD Rate of Return with direct link to account performance

Recent Activity Same format as simplified Transaction History view minus Activity Type with direct link to Summary & Detailed Transaction History

Retirement Help Educational videos to help participants make better decisions about planning, savings, and investing for retirement

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Participant Home Page (Option 2)

Retirement Progress Updated K4 Plan Goals graphic with retirement progress results and SSO link to K4 Plan Goals to review/modify assumptions, review results and access personal report

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Refreshed Participant Web Experience Best Practices •

After the new formatting is applied to your site, review all web pages to ensure that logos and any custom content have not been impacted

•

Review content of enhanced Auto Rebalance pages to ensure content is still relevant; modify as needed

•

Select one of the predefined Home Pages (Optional) - Option 1: Five standard gadgets plus Retirement Help videos (vWise) - Option 2: Five standard gadgets plus Retirement Progress (K4 Plan Goals)

•

If using new predefined home page option, apply top navigation menu to maximize screen real estate

For example, the slight increase in font size might cause wrapping of text in some instances

You can choose to: • Keep your current home page or current gadget page •

Use one or both of the new home page options

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SunGard WealthStation PlanAdvisor Ben Lee

Charles Schwab Advisor Services

SunGard’s WealthStation PlanAdvisor 

WealthStation PlanAdvisor is a practice management solution that helps advisors and their co-fiduciaries collaboratively design investment line-ups and conduct fiduciary reviews, while maintaining compliance with regulations such as 408(b)(2)



Integration with Schwab Retirement Technologies (SRT) automates access to plans on Schwab’s custodial platforms, including Schwab Trust and Schwab Custody (Broker), as well as additional plans with any other custodians*

Increase efficiencies by automating fiduciary processes in one system: Investment selection Fund monitoring Fee disclosure reporting

*Plans with other custodians must be housed on Schwab Retirement Technologies in order to access.

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SunGard’s WealthStation PlanAdvisor 1.

Contact [email protected] or 646-445-1004 for more information

2.

Request a Schwab Direct Data Access agreement from Kris Studioso ([email protected]) which will allow your advisor using WSPA to access recordkeeping data via the following web service calls: −

GetOperatorSessionID: retrieves a session ID for an operator

−

GetPlans: gets a list of plans for an operator who only has access to those plans

−

GetPlanDetail: gets plan level detail for an operator

−

GetModels: gets investment models for an operator

−

GetModelDetail: gets investment model details for an operator

3.

Contact Schwab RT Client Services to complete setup

4.

Set up Plan Advisors via Schwab RT Administration Security User Wizard −

Login credentials on SRT must match credentials from WSPA

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Early Trade Cutoff

Cathy Whisonant

Charles Schwab Advisor Services

Early Trade Cutoff Overview •

•

The Recordkeeping system recognizes holiday and early market closings and reports trade orders requiring review on Order Exceptions Report •

Schwab RT updates stored procedure once NYSE publishes market closing holidays

•

Trade Order now recognizes both early trade cutoff time along with holiday market close

The following areas in RK and SchARP recognize early trade market cutoff time •

Process Participant Requests

•

Generate Trade Orders and Order Maintenance

•

Batch Trade Maintenance

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Order Exceptions Reporting •

Orders are reported for 6 different reasons

•

Changes to the Exception Types [ 1-6 ], each changed to include Early Market Cutoff 1 : Batch xxxxx was created and ordered after the lesser of cutoff time or early cutoff time 2 : Batch xxxxx was purged after the lesser of cutoff time or early cutoff time 3 : Batch xxxx was maintained after the lesser of cutoff time or early cutoff time 4 : Order xxxx was purged after the lesser of cutoff time or early cutoff time 5 : Order xxxx was maintained after the lesser of cutoff time or early cutoff time 6 : Batch xxxx was created and not ordered until at least the following day

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Participant Web Example •

Normal Market Cutoff Time = 4pm

•

Early Market Cutoff Time = 1pm

•

System uses Early Market Cutoff Time in comparison to determine which requests are processed

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Rehire and Vesting Enhancements Bailie Foss

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Rehire Enhancements – Multiple Term/Rehire •

RK will calculate vesting properly when there are single, or multiple, term/rehire dates.

•

Service Spanning rules enforced where applicable.

•

Break-In-Service rules are not in scope and will continue to be managed by user.

Elapsed time vesting schedule – 5 year graded, 20% per year. Charles Schwab Advisor Services

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Rehire Enhancements – Option to Change 1000 Hour Default •

RK setting in Plan Maintenance>Other Plan Features node to override 1000 hour default for vesting. •

Default is set at 1000.

•

Warning message to indicate a change may impact participant vesting.

•

Plan hours vesting increment displayed on Participant Maintenance-Hours node.

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Vesting Validation Worksheet – Period Credit Table •

Period credit calculation table for plans using elapsed time

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Rehire/Vesting Changes – Impacts to You 

Vesting maintenance – For a plan using elapsed time, and the participant had a termination date that preceded a rehire date, vesting was calculated to the termination date and did not consider a subsequent rehire date. A maintenance fix has been implemented whereby the vesting calculation will look for a subsequent rehire date to vest from. No action needed on your part.



New vesting enhancements •

Calculate vesting for participants with multiple term and rehire dates. Vesting will now be calculated using historical term/rehire dates. What this means to you: 

If there are historical term/rehire dates (excluding the current dates we migrated in November 2014) in Periodic Participant data that should be used in the vesting calculation, you will need to migrate those dates to the partdatehist table. - Extract utility, GetTermRehireDates.rpt. (May 2015 release).



•

Prior to the August release, if Service Date or Participation Date have been modified to vest accordingly, the vesting may be understated now with the enhancement considering multiple term/rehire dates. We will extract the following information before and after the deployment so that you will be able determine if vesting decreased and dates need to be corrected (Plan, SSN, Source Number, Vested Percent).

Option to Change 1000 Hour Default: 1000 hours is still the default; if you have a plan that uses something other than 1000, you will now have the option to change the default value in Plan Maintenance, and the applicable vesting schedule(s). Otherwise there is no action needed on your part. Charles Schwab Advisor Services

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Rehire/Vesting Changes – Impacts to You (Continued) Scenario

DOT Populated

DOR Populated

Impact

Action Needed

1

Yes

No

None

None

2

Yes

Yes

Vesting change

None – prior to the August release, RK would not recognize the term date and would calculate vesting from DOS->current. Now the calculation will consider prior termination dates and service spanning rules.1

3

Multiple

Multiple

Vesting change

None - Vesting calculation behavior now factors in multiple term/rehire dates and service spanning rules. Confirm vesting via Vesting Worksheet.1

Important: if DOS/DOP dates were modified to calculate vesting properly, after August 30th there is a risk that vesting percentage was reduced because RK will now factor in termination/rehire dates. We will export the following data prior/post release night (August 30th): Plan, SSN, Source, and Vested Percentage. You will be able to compare the files at your convenience. If the vesting percentage decreased (post release) – this is likely due to modified dates and you will need to enter the proper DOS/DOP dates to leverage the new RK elapsed time vesting calculation. 1 Users

are encouraged to extract and review the vesting for elapsed time plans prior to the August 30th. The Participant Data Extract (C158) Utility is available to extract vesting information.

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High Priority Resolutions

Cathy Whisonant

Charles Schwab Advisor Services

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Performance Links Where 

Gadgets − −

  

Investment Elections Investment Allocations

Investment Summary page Investment Elections page Realignments page

Impact   

Gadgets display fact sheet link set up in Investment Maintenance All web pages display Morningstar links when applicable or Investment Maintenance links OLE pages also updated to show links

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Redemption Fee Warnings Where  

Loans Enhanced Transfers

Impact 

Generic Warning no longer displays to participant unless investment in a plan has a CRF

LDT Extract Performance Where 

LDT Extract

Impact 

In some cases, it was taking over an hour to extract the LDT records. By improving the coding logic of how the records are returned, LDT Extract should complete within minutes.

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Notice of Deposit by Division and Adjusted Amounts Where  Payroll Impact  If there is only one NOD record, automatically adjust the NOD by forfeiture and adjusted amounts.  If there are multiple NOD records, prompt the user when navigating to the NOD screen that they need to adjust the NOD amounts. The message should state the following : "STOP: Please adjust NOD for Forfeiture or Adjustment amounts! Forfeiture or Adjusted amounts were entered for this payroll. The NOD does not automatically reflect these amounts. Therefore, the NOD Total Control Total. You are required to edit the NOD if the forfeited or adjusted amount should not be included in the NOD total. To edit, select “VIEW” for the NOD record(s) that should be adjusted. An “Allocation Breakdown” screen displays that allows edits of the NOD record."

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Resources and Upcoming Events Ben Lee

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Upcoming Webcast - September 29, 2015 Preview the new Plan Sponsor & Advisor Web Experiences Coming November 2015

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Resources to Help You schwabrt.com Resource Center

AUGUST 2015 RELEASE (8/30/2015)

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Questions?

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Thank you

The Charles Schwab Corporation provides services to retirement plans and participants through its separate but affiliated subsidiaries: Charles Schwab & Co., Inc., Charles Schwab Bank, Schwab Retirement Plan Services, Inc., Schwab Retirement Plan Services Company and Schwab Retirement Technologies, Inc.® (Schwab RT). Schwab RT is engaged in developing and licensing proprietary retirement plan recordkeeping systems to independent Third Party Administrators. Trust, Custody and Deposit products and services are provided by Charles Schwab Bank. SunGard is not affiliated with nor employed by Schwab Retirement Technologies nor its affiliates. Schwab RT does not supervise third party firms and takes no responsibility to monitor the services they provide to you.

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