RolloverSystems Introduces Key HR Innovation With Direct-To-Employer 401(k) Rollover Technology
One-Stop Solution Lets Workers Shop, Choose Rollover IRA Options;
Enhanced HR Service, Lower Plan Costs Are Benefits For Employers
CHARLOTTE, N.C. (June 23, 2003) -- RolloverSystems Inc. today announced that it has begun offering its innovative 401(k) rollover technology directly to employers, giving employees in transition a quick, easy, and smart way to roll over the savings in their employer's defined contribution plan to an Individual Retirement Account (IRA).
For employers, becoming a member of the RolloverSystems Employer Network can help reduce the costs and administrative burden associated with sponsoring a defined contribution plan. Additionally, the product helps mitigate the legal liability associated with handling the 401(k) accounts of current and former employees. And for a minimal cost, an employer can help its employees make the sound financial decision to allow their retirement savings to continue growing on a tax-deferred basis.
RolloverSystems' core technology allows 401(k) plan participants to go online, fill out one simple form, then compare and choose from multiple IRA offers from competing top-tier financial institutions, including J.P. Morgan Chase, TD Waterhouse, and Harrisdirect. Offering the rollover tool direct through employers streamlines the process further by giving the plan participant online access to critical, company-specific documents needed to complete a rollover, such as the Request for Distribution Form, or other documentation required to complete the transaction.
"RolloverSystems is revolutionizing the way 401(k) rollovers are completed by giving plan participants a way to find a Rollover IRA that matches their investment needs in as little as 25 minutes, compared to up to eight weeks using the traditional process," said Reginald Bowser, president and chief executive of RolloverSystems Inc. "And in doing so, we are also delivering significant benefits to employers. Providing incoming or departing employees with the ability to choose Rollover IRA options from competing top-tier financial institutions helps employers mitigate some of the real liability risks associated with defined contribution plans. Instead of putting themselves in the position of providing advice to employees about their 401(k) plan, employers who join the RolloverSystems Employer Network can utilize our technology to help employees help themselves."
The administrative tasks associated with completing traditional rollovers are a burden to the employer as well as the employee, Bowser said. With the RolloverSystems Employer Network, 401(k) plan participants will simply enter an employer-specific code and password, complete a short questionnaire, compare their competing rollover offers, and answer additional questions required by their chosen financial institution. Once finished, the employee will be able to print all of the documents required to open their new Rollover IRA account, and transfer the assets from their employer-sponsored 401(k) plan into their new Rollover IRA.
By becoming a member of The RolloverSystems Employer Network, Employers can also comply with the new rollover requirements of the Economic Growth & Tax Relief Reconciliation Act of 2001 (EGTRRA), Bowser said. Under the law, employers will be required to automatically roll over involuntary distributions for certain former employees, unless the plan participant affirmatively elects otherwise.
To participate in the RolloverSystems Employer Network, employers sign an annual agreement with no renewal fee, unless they modify their Request for Distribution Form, or other company-specific documents that may be required The costs are minimal, ranging from $500 to $7,500, depending on the size of the employer's work force. Because the software is completely Web-based, no internal IT integration is necessary.
RolloverSystems' rollover solution is available directly to job changers at www.rollovermarket.com. The flexible technology platform is also delivering rollover solutions through integration into HR software suites and on a private-label basis through selected financial institutions.
