The Omni Group

The OMNI Observer June 2010

 

Rod Williams

President's Message

Rod Williams

The end of the 2009-2010 school year is in sight, and with that in mind I wanted to personally thank all of our clients for another year of allowing Omni to serve as your TPA.

In the past year, OMNI has received an unprecedented level of industry recognition as one of the leading Third Party Administrators (TPAs) in the country. It is my belief that with each recommendation we receive comes an increased level of accountability and responsibility.

During the summer months we will continue to scrutinize every facet of our procedures and processes, with the goal of improving both the level of services offered and turnaround time on transactions.

We also look forward to hosting an extensive series of Web Seminars with clients across the country. Using cutting edge technology, these virtual meetings allow OMNI to work directly with employees and business officials in real time.

I think the upcoming Web Seminars have the potential to be a tremendous engine of change. Many of OMNI’s current technologies and services evolved based on comments and suggestions from our clients. As an extension of our “Listens, Leads, Delivers” philosophy, you can be certain that your input will continue to play a key role as we move into the future.

In closing, I would like to wish everyone a wonderful summer on behalf of the entire OMNI family. I hope that you have a safe and enjoyable time with your families.

- Rodney H. Williams, President, CEO
The OMNI Group, Inc.		             kids
411 for your 403(b)

     OMNI in the News:
  • OMNI recently appeared in Rochester’s Democrat & Chronicle, as one of the area’s leading companies. The mid-April feature, OMNI weathers ‘perfect storm’ to double in size, highlighted OMNI’s growth over the past year, as well as offering an insider’s look at how OMNI created the necessary infrastructure to strengthen our position as an industry leader.

     Website Enchantments:
  • Be on the lookout for upcoming enhancements to OMNI’s website in the coming weeks and months! In addition to our already operational online hardship, loan and SRA forms, we will soon be rolling out a suite of new services allowing you to track changes to your deduction profile on a daily basis. While you are visiting our website, don’t forget to check out our new Upcoming Events section.

     Customer Care Team:
  • Our Customer Care Team continues to operate from 7:30 a.m.- 5:00 p.m. ET, and currently boasts an answered call percentage of more than 97%! Our Customer Care Representatives stand ready to assist you with a variety of questions pertaining to SRA’s, transaction requests, and any other concerns that might arise. Feel free to reach out to this dedicated team at 877-544-6664.

     Informational Seminars:
  • OMNI’s Management Team would like to offer a “thank you” to our clients who joined us for April’s series of Informational Seminars. We hope you enjoyed attending as much as we enjoyed presenting!

     SPARK File Sharing Conferences:
  • OMNI’s General Counsel attended the Chicago SPARK file sharing conference in mid May. The industry wide SPARK initiative is designed to see TPAs, vendors, and Service Providers working together to establish best practices and ensure the highest possible levels of service to our mutual clients.

End of Year Checklist
  • With the official start of summer just a few days away, the vast majority of OMNI’s clients are probably looking forward to a well earned vacation, while a smaller number of 403(b) participants are making their final preparations for retirement. Whether you are bidding farewell to the classroom for a few short months, or finishing a successful career, the end of the school year can pose some unique challenges to you as a plan participant.
  • Many participants seek to change their deduction amounts for the summer (or to have a new deduction in place upon their return to work in September). For these individuals, OMNI’s Salary Reduction Agreement (SRA) is the main tool for making deduction changes. Just visit our webpage at www.omni403b.com to complete an online SRA, which is located under the “forms” section. Using the online SRA form will allow you to make multiple changes in one sitting, and also enables you to set changes to become effective at a later date, even at the start of the new school year.
  • Many employees and retirees find themselves in a position to shelter larger than average amounts in the last payroll of the year. If this describes you, get ready to visit our online SRA again! This time, instead of making a change, you will be making a special contribution request. If you will be returning to work in the fall, select a one time contribution; this will ensure that your standard contributions resume for the next active payroll. If you are planning to retire, simply check the box indicating final contribution and your employer will be instructed to stop any further deductions after the date of your last contribution.
  • Non-elective contributions, commonly known as retirement incentives or employer contributions, are becoming an increasingly common sight in 403(b) plans. While not every employer offers non-elective contributions, it is still important for participants who will be receiving a “payout” to be certain of how their contributions should be processed.
  • The test to determine if your payout is non-elective is simple: if you MUST accept these funds into a 403(b) account only, the contributions are non-elective- which can be very good news for you as a plan participant! Non-elective contributions are handled by your employer and OMNI; no action is required on your end! Furthermore, non-elective contributions are subject to different limits- allowing a theoretical maximum contribution of up to $49,000 in employer generated funds in 2010.

     Not sure if your payout qualifies as a non-elective?
  • Must be deposited to a 403(b) or 457 plan
  • Often remitted through accounts payable
  • Can exceed IRS employee contribution limits

Standing Alone: What it means to be an independent TPA
  • As OMNI continues to strengthen our presence across the country, we have had the pleasure of meeting many new friends. One of the most common questions we hear from both new and veteran 403(b) participants is: “Who is OMNI?!”
  • The answer is simpler than one might suspect. OMNI is an independent Third Party Administrator (TPA), which is to say that we are unaffiliated with any particular service provider or fund company. OMNI does not offer any investment products, nor can we refer you to any specific fund company; our only focus is providing the best possible compliance and remittance services to you and your employer.
  • We work directly with your employer’s Key Business Officials, to help your 403(b) plan operate in accordance with all pertinent IRS regulations. This includes helping to calculate Maximum Allowable Contributions, verifying eligibility for 403(b) transactions, and keeping your employer apprised of the constantly changing details of the 403(b) landscape. At the same time, by assisting your employer with 403(b) remittance, OMNI guarantees that your contributions are received by your service provider as quickly as possible.
  • As an independent TPA, you can rest assured that OMNI’s sole concern is the integrity of your 403(b) plan.
Compliance Corner

     Summer Transactions
  • Although contributions are put on hold for the summer by many participants, the next few months are anything but quiet in the world of 403(b) transactions. “We see a significant spike in the number of certain transactions throughout the summer months,” says Rob McLean OMNI’s Director of Compliance.  “Hardship and loan requests become much more common, and many new retirees begin seeking distributions.”
  • For retirees starting to take distributions from their plan, the process begins when you contact your Service Provider to initiate the transaction. Your Service Provider will work with you to complete the necessary paperwork, which will then be forwarded to OMNI.
  • OMNI reviews your distribution request, verifies your employment status with your former employer, and then return your transaction directly to your Service Provider (who will actually issue your distribution). By returning your transaction directly to your Service Provider, you are assured the shortest possible turn around time.
  • According to McLean, the summer months are tremendously popular times for more involved transactions as well. “Whether you need some additional cash for home repairs, or are going to be sending a dependant to college in the fall, a 403(b) loan or hardship withdrawal can help to cover certain expenses.”
  • IRS regulations dictate that a hardship withdrawal can only be taken when an “immediate and heavy financial need” exists (see below). As with a distribution, your first step will be to contact your Service Provider to initiate the transaction. Next, you will want to visit OMNI’s website at www.omni403b.com to complete the necessary OMNI forms, which can also be submitted online.
  • If you are requesting this type of withdrawal, it is important to demonstrate the nature of your financial hardship. You may be required to supply supporting documentation, such as medical bills, a purchase offer on a primary residence etc. If necessary, any documentation can be faxed to our Service Provider Team’s dedicated fax line at 585-756-5557.
  • Similar to Hardship withdrawals, Loan requests require you to complete some basic OMNI paperwork after initiating the transaction with your service provider. Specifically, OMNI will need to review your past loan history, as well as ensure that any specific requirements set forth by your Service Provider are fulfilled. As with a Hardship Withdrawal, the necessary paperwork can be found on OMNI’s website, under the forms section.
  • By their very nature, hardship withdrawals and loan requests are often associated with urgent circumstances- which is why our Service Provider Team takes every possible step to reduce turn around times. When complete documentation is received, your request is usually approved in less than 10 business days. If at any point you want to check on the status of your particular transaction, feel free to contact our Customer Care Team at 877-544-6664.

     Hardship Circumstances:
  • Certain medical expenses
  • Costs related to the purchase of a primary residence
  • Educational fees (tuition, room and board etc.)
  • Payment necessary to prevent eviction
  • Payment of funeral expenses
  • Certain expenses related to the repair of a primary residence

Click here to download a pdf version of The OMNI Observer

You may need to download the latest Adobe Acrobat Reader to view this document
Download Adobe Acrobat Reader