We Believe In The Impact of Our Work
The members of The Cerrado Group provide the deep roots that businesses need to thrive. Each of our member firms are constantly evolving to provide the most comprehensive level of expertise available in the retirement plan industry.
Your money, your associates, your reputation, your retirement plan, your business: they matter.
At The Cerrado Group, we know the impact our uncommon expertise can have on the retirement plan business. Record-keeping and the administration of retirement plans is complex, specialized work. And the effects of getting it wrong can be paralyzing in both the long and short term. Are you or others on your staff experts at navigating the regulatory filings, compliance requirements and legal aspects of a retirement plan? Can you or others on your staff interpret all the plan provisions?
You wouldn’t go to the dry cleaners to get a tooth pulled. And you wouldn’t go to a tax attorney for automotive advice.
We have the tools, the teams and the knowledge to serve our industry.
Choose an area of expertise below to find out more information.
Services Our Members Offer
Plan Administration
Annual administration of a retirement plan is the process of correlating the plan design and the plan sponsors data to determine appropriate coverage, contribution and reporting requirements under the Internal Revenue Code.
The Plan Administration areas of expertise of our members include:
Daily Valuation
Plan Sponsors may choose to offer daily valued plans in which the plan participants may access account information 24 hours a day via the internet. These plans are referred to as ‘daily valued’ because the share prices of the mutual funds in the plan are updated on a daily basis. Several transactions including contributions, distributions, and investment transfers are processed at the time actually executed, so employee accounts are current at the end of every day.
Cerrado Group Member Daily Valuation Plan Areas of Expertise:
Expertise in daily valuation platforms and processes for businesses and industry professionals:
Retirement Plan Design
The Cerrado Group members are experts in retirement plan design, offering guidance to business owners and industry professionals.
Consulting assistance includes:
- Provide advice and guidance regarding plan design, benefit formulas and eligibility.
- Provide information regarding expected liabilities, contributions, benefit payments and plan document review.
- Prepare projections for age‐weighted and target benefit plans.
- Prepare adoption agreements, summary plan descriptions, and plan amendments, as needed.
- Determine and recommend necessary plan changes, as needed.
Benchmarking
Our Members provide benchmarking assistance, including:
- Reviewing the plan for costs
- Reviewing plan features
- Comparing the plan with similar sized plans in similar industries
Technical Corrections
Our members expertise is in all aspects of retirement plans. One of the key areas that is often overlooked is the correction of technical errors in the plan. Those errors, if handled incorrectly can be very costly for the plan sponsor.
Technical Corrections Include:
- EPCRS (Employee Plans Compliance Resolution System) for operational issues
- DFVCP (Delinquent Filer Voluntary Correction Program) for non-filing of Form 5500’s
Other Consulting Services
What is a Fiduciary?
A fiduciary by definition, is a person or entity who owes a duty of care and trust to another and must act primarily for the benefit of the other in a particular activity. For retirement plans, the law defines the actions that result in fiduciary duties and the extent of those duties.
Many of the actions needed to operate a qualified retirement plan involve fiduciary decisions – whether that person or organization is a third party who manages the plan, or the plan management is done inhouse. Controlling the plan assets or using discretion in managing the plan makes the entity hired, the plan fiduciary to the extent of that discretion or control. Fiduciary status is based on the functions performed for the plan, not a title. Be aware that hiring someone to perform fiduciary functions is itself a fiduciary act. Fiduciaries are in a position of trust with respect to the plan participants and beneficiaries and require you to act solely in the in interest of those participants and beneficiaries. The responsibility to be prudent covers a wide range of functions needed to operate a plan.
Our Members Are Experts at ERISA Section 3(16)
Plan sponsors need to run their business to be successful and navigating retirement plan rules, regulations and reporting requirements does not usually fall into their schedule. While many plan sponsors are familiar with the liability related to plan investments and fees, the operation of the plan also carries fiduciary risk. The IRS and DOL impose penalties and fines on plans that have operational or reporting errors under ERISA Section 3(16). Cerrado Group members work as experts in this area and help industry professionals and business owners to navigate this important area of retirement plan administration.
3(16) Fiduciary Options and Information
These are areas that plan sponsors and industry professional should be aware of when working with retirement plans.
Following the Plan Document and Procedures
- Assist in establishing, implementing and modifying internal control
- Adopt amendments per Plan Sponsor’s direction
- Provide necessary 204(h) notices
- Interpret plan document provisions and make recommendations
Payroll-Related Services
- Confirm that salary deferrals and loan payments are properly reflected on pay date payroll reports
Participant Enrollment Responsibilities
- Provide initial participation paperwork
- Review and ensure auto-enrollment of participants, if applicable
- Review and ensure auto-increase of deferral rates of participants
- Review completed elections forms
- Advise fund holder, payroll service, Plan Sponsor of participant elections
- Record and Document Maintenance
- Retain completed election forms and beneficiary designations
- Maintain full copy of plan documentation
- Make plan document available to participants upon request
- Distribution and Loan Responsibilities
- Notify payroll provider of loan payments to be taken from payroll
- Confirm that loan payments are being taken from payroll
QDRO (Qualified Domestic Relations Order) Responsibilities
- Act as recipient for proposed QDRO submissions and determination of validity of proposed QDROs
- Communicate with participants, alternate payees and their representatives regarding proposed QDROs
- Approve segregation of alternate payee’s interest and authorize distribution to alternate payee
Reporting and Disclosure Responsibilities
- Sign government Form 5500, form 8955-SSA and Form 5330
Other Responsibilities
- Maintain fidelity bond
- Act as agent for service of legal process for the plan
- Annual meeting in person or via video conference
*All items listed are an example of offerings from different firms. Each firm will have its own distinct list of services offered and those offerings will vary.
Other Consulting Services
Cerrado Group Members offer a unending variety of Retirement Plan consulting. They are are truly the experts in the industry. In addition to normal plan operations, our members can also assist plan sponsors and retirement plan industry members with the following:
Governing Documents and Compliance
- Overall review of plan documents
- Review of plan notices
- Review of plan policies and procedures
- Review plan fee agreements and investment policy statements to assure compliance
Representation
- Members can serve as expert witness on actuarial issues
- Members that have ERPA designation can also represent clients in front of the IRS
Merger & Acquisition Plan Reviews
Employers are sometimes surprised by the hidden liabilities and complexities that employee benefit plans can add to the sale of a business. Our members can assist in a pre-transaction benefit plan review to identify areas of significant financial exposure and transitional concerns.