Plan Management Software

[Guest asire2006]

We are looking for a vendor of plan management software. What we need is a system where we can input all of the various features of our client plans, and then run reports based on one or more fields, for example, plans with fiscal year plan years, plans that offer loans, plans that have adopted the 401(k) safe harbor, etc. Is anyone aware of anything like this that is available for purchase? Thanks.

[mwyatt]

We went through this about 3 years ago, looked at the various products out there (our admin software is ASC, and they offered a package that we didn't really feel offered the flexibility that we needed), and came to the conclusion to "roll our own".

Took about 2 weeks of scrubbing our existing various spreadsheets for data integrity and some mapping, but ended up with a relational database that has proved very powerful and handles annual administration logging, invoice history, and plan amendments (literally pushed a button to generate all of the Mandatory Distribution amendments for example).

If you have some database prowess, you may come to the conclusion that the best package is one you create yourself.

[Guest esi-jht]

mwyatt,

I'm curious to know how you handle plan amendments in your database.

[mwyatt]

We used the database to generate standard "boilerplate" amendments (see the Mandatory Distribution Amendment). We used Lotus Approach for the database software, and entered the text of the amendment as a form letter. We then edited to put in the appropriate variables (plan name etc.) into the text. In this instance we were generally amending most of our plans to lower the threshold to $1,000, the amendment read that way, although you could introduce a variable depending on the appropriate election. You can have conditional language put into a form letter to cover differing elections.

One thing that I always remember is the 80/20 rule (ie, 80% of your time is spent on 20% of the exceptions). The database approach to the amendment was invaluable as it covered most of our plans' amendment elections. Where a plan was to select a different amendment, we could focus on that, rather than having to waste time looking at the other 700 plans that went with the straight boilerplate. With the database we were able to "soup to nuts" generate the cover letter, amendment, resolution, SMM, invoice, and mailing labels, all in sorted order for assembly.

If you are at all familiar with database software, look to form letters; you can do much more than just simple letters with this approach. Clearly you wouldn't use this to generate the EGTRRA restatement, but for simple amendments it was a real timesaver.

[Guest esi-jht]

MWYATT,

Thanks for the information. One more question, please, concerning amendments. Do you keep track of when and how a plan has been amended in your database? Example: If a plan amended for the lower distribution threshhold, then amended to change loan provisions, then amended to add hardship distribution options do you keep track of each of these amendments and the dates they were made? I don't mean do you actually keep track of the physical amendment and it's language. TIA

[mwyatt]

What we have been keeping track of are the various "milestone" amendments (GUST restatement, EGTRRA, MDA, whatever else rolls up the pike) on our database, with variables for when they are sent out and when we receive the signed amendments back from the clients. One could create fields or notes for any extra amendment comments that you wanted to make per client, although we haven't pursued this yet. One of the advantages of creating your own is that you can decide what is important to you and add features fairly quickly. Just put your Mr. Spock ears on first though, as you need to think logically about the easiest (and most robust) way to handle situations. Relational database approach is the way to go, as you can add separate databases on the fly (keying off plan type, sponsor type, etc.) to create some pretty custom reports.

[Guest bostonborn]

We use ACT! and love it.

It is exactly as you describe and we use it for amendments as well. You can print off reports based on fields you put in (who uses what fund platform, who is SH, who uses this broker, who has this year end, etc.)

Creating your own sounds great if you have a techie who can do that. But ACT! is pretty customizable as you can add whatever fields you want.

I would be happy answer any questions if you need more help or info on ACT