Seafirst develops new retirement plan for small businesses.SEATTLE--(BUSINESS WIRE)--Dec. 2, 1996--Seafirst Bank has introduced a new retirement plan for small companies that provides them with the same level of service and coverage typically offered to large corporate clients by retirement service providers, but at a lower cost. Called the Daily Advantage Retirement Plan Program, the new product is designed primarily to meet the needs of small businesses that typically have less than 250 employees and gross revenues of under $25 million dollars and wish to establish a qualified defined contribution plan Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan , such as a 401(k), profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of , or money purchase plan. A business also can convert an existing defined contribution plan to the Daily Advantage Program. "Small businesses don't have large in-house human resource or employee benefit departments and rely on outside service providers for the bulk of their specialized employee needs," said Lorraine Bauman, Seafirst Retirement Plan Specialist. Research indicates that 80 percent of the businesses operating in Washington state are small businesses and that more than half of the state's small businesses are concentrated in the retail and services industries. This suggests that the market for the Daily Advantage Program is large, says Bauman. Under development for the past year by BankAmerica Corp., Seafirst's parent company, the Daily Advantage Program uses a broad range of technology to deliver more retirement planning Retirement financial planning refers to a collection of systems, methods, and processes which, in their aggregate, support a family unit's (client's) desire to achieve a state of financial independence, such that the need to be gainfully employed is optional. information and services to small business clients than ever before. In order to deliver a quality program at a reasonable cost, BankAmerica has established an alliance with BISYS Plan Services to provide clients with services that include such things as professional reporting and record keeping, daily accounting information, discrimination testing Discrimination testing is a technique employed in sensory analysis to determine whether there is a detectable difference among two or more products. The test uses a trained panel to discriminate from one product to another. , quarterly statements, and more. BISYS also customizes all of the enrollment materials, and it maintains the 800 number that gives employees access to account information, and lets them transfer funds between investment options selected by their company. Seafirst's Daily Advantage Program offers a convenient, cost- effective way for a small business to meet its 401(k), profit sharing, or money purchase plans needs through a multidisciplined team approach established by the bank. Moreover, says Bauman, the Daily Advantage Program is not an off- the-shelf, one-size-fits-all type of plan. For example, the prototype plan Prototype plan A qualified retirement plan sponsored by a financial institution. It may be adopted by executing a written agreement. A prototype is generally more flexible than the IRS Form 5305 or 5305-A and may have additional special features. Also called a master pension plan. offers a great deal of flexibility. Elements of the plan can be modified easily to reflect the company's goals and employee demographics by allowing the business to select the appropriate mutual funds, vesting and eligibility schedules, loan and distribution options, and company matching or profit sharing options. The daily Advantage Program also provides a company's employees with a simple, convenient way to plan for retirement by automatically investing a percentage of their paycheck, pre-tax, in publicly registered mutual funds with no front end load sales charges, notes Bauman. After the Daily Advantage Program has been installed, the bank works with the company to provide plan participants Plan participants Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. with a broad range of general investment education materials and information about how the investment aspects of the plan operates. Seafirst has been serving the small business market for over 126 years. The BISYS Group Inc. supports more than 5,000 corporate-sponsored retirement plans consisting of nearly 600,000 employee participants in conjunction with 20 of the nation's leading bank and investment companies. The BISYS Group Inc. is based in Little Falls Little Falls is the name of some places in the United States of America:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol BSYS. -0- Mutual funds and other securities are not insured by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). , and are not deposits or other obligations of, or guaranteed by, Seafirst, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. or any of its affiliates. An investment in mutual funds or other securities is subject to investment risks, including the possible loss of the principle amount invested. CONTACT: David Jimenez, Seafirst Bank Seafirst Corporation was a bank holding company based in Seattle, Washington. Formed on November 11, 1929, from the merger of Seattle's three largest banks, the First National Bank Group, the Dexter Horton National Bank (founded 1870 by Dexter Horton), and Seattle National , 206/358-7695 http://www.businesswire.com/cnn/seafirst.htm |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion