"We have a large client that will be opening a new CB plan for 2026. They recently closed a former CB plan. It was managed and record kept in the traditional way. Now the CEO would like to investigate online record keeping products for the new CB plan. Does anyone know of a CB record keeping product?
"The CEO would like participants to be able to access their balance throughout the year. Their plan plan credits actual
earnings between 0 and 5.5% annually. How would actual earnings be credited during the year? The plan sponsor historically pre-funds large amounts to the plan monthly. How would that get credited to participants? The plan requires 1000 hours teach year to receive a contribution credit. This could work reasonably if the plan is funded once after the end of the year, and then actual earnings within the allowable range are credited.
"I can see some advantages with distributions -- online application, notification to the Trustee to approve. The spousal waiver witness/notary could be a complication. To make it work, the plan sponsor may need to change how it has operated in the past. Plus there are record keeping fees which will eat away at the low earnings needed by a CB plan. The plan has operated very well under the traditional arrangement but technology
sounds appealing more to some than others. Comments, product recommendations, experiences are appreciated."
