Plan Sponsor FAQs

AutoRollovers is a service offering of BPAS, a wholly owned subsidiary of Community Bank System, Inc. (NYSE:CBU). We have been providing IRA outsourcing solutions to banks, trust companies and credit unions since 1997. We developed our AutoRollovers solution for mandatory distributions in early 2005. We currently handle IRA rollovers for thousands of Plan Sponsors in partnership with third party administrators across the U.S.

Effective May 1, 2009 custody of all IRAs serviced by BPAS, including AutoRollovers IRAs was transferred to Hand Benefits & Trust Co., a BPAS Company located in Houston, Texas.

AutoRollovers provides a no cost account set-up process that has been streamlined for ease of use and client satisfaction. We have reunited thousands of missing and/or non-responsive participants with millions of dollars of their retirement savings.

Additional benefits include:

• No set-up fees;
• Superior product for Participants:
• Professionally screened and monitored mutual fund menu;
• 24/7 access to automated account information via Voice Response Unit or Web. Live customer service is available 8:00 am – 8:00 pm ET.

While each TPA engagement is unique, we generally advise that you have your TPA contact us to explore involving them in the process. Experience has shown us that the process is more efficient when the TPA participates. However, we do have a number of Plan Sponsors that use AutoRollovers, without the assistance of their TPA.

There are no set-up fees associated with using AutoRollovers. IRA accounts will be charged the following monthly fees. There will also be a $50 withdrawal fee and other fees as they may apply. These fees are considered reasonable for comparable IRA plans.

Each year, AutoRollovers submits its database to a commercial search firm, in an attempt to reconnect accountholders with their IRA accounts. Attempts are made annually, until such time as the account becomes subject to state abandoned property laws.

There are a number of reasons for a Plan Sponsor to rid the Plan of small account balances of former employees, including:

• Prevent the need to file as a large plan, avoiding expense of an audit;
• Accelerate access to forfeiture dollars by forcing distribution, there is no need to wait for the occurrence of 5 breaks in service before forfeiting;
• Eliminate disclosure/communication requirements with former employees;
• Minimize lost participants in the case of plan termination;
• Reduce administrative costs, for plans paying administrative expenses based on the number of Participants in the Plan.

For terminating Defined Contribution Plans, the DOL has advised that plan fiduciaries can transfer individual retirement plan assets to individual retirement accounts (IRAs) if, after taking all prescribed steps to locate the owner, the owner cannot be found.

These prescribed steps include using certified mail, checking other employer plans and employer records, checking with a designated plan beneficiary for the individual’s whereabouts.  In addition, fiduciaries should make reasonable use of free electronic search tools.

For more information, check out the Department of Labor Field Assistance Bulletin, FAB 2014-01.