PLAN HEALTH REPORTccrs.biz/wp-content/uploads/2017/10/Year-End-2016-Sample-Plan-He… · Page 5 Sample 401(k) Plan | Plan Health Report Plan Summary Qualified Default Investment Smart

Pensionmark Financial Group, LLC (“Pensionmark”) is an investment adviser registered under the Investment Advisers Act of

1940. Financial Advisors at Pensionmark may also be registered representatives of CapFinancial Securities, LLC (member

SIPC), which is affiliated with Pensionmark through common ownership.

PLAN HEALTH REPORT

Sample 401(k) Plan

Year-End 2016

Page 2 Sample 401(k) Plan | Plan Health Report

I. Plan Summary

• General Plan Summary

• Plan Cost Summary

• Historical Plan Costs

• Plan Asset/Participant History

• Plan Testing History

• Loans Summary

• Cash Flow Summary

II. Plan Health Analysis

• Current Plan Health

• Historical Health Score

• Participation Health Score

• Deferral Health Score

• Diversification Health Score

Table of Contents




PLAN SUMMARY

Sample 401(k) Plan


Plan Record-keeper Fidelity (Direct) Investments

Contract Number 28804

Plan Administrator Fidelity (Advisor) Investments [c]

Plan Type 401(k)/Profit Sharing Plan

Date Became Advisory

Client5/1/2002

Plan FeaturesLoans are allowed. Hardship Withdrawals are allowed (e-Certified Hardships). In-Service

Withdrawals at age 59.5 are allowed.

Fiduciary Liability Insurance Unknown

Automatic Enrollment Yes

Automatic Step-Up Yes

Safe-Harbor Plan No

Plan Summary


Plan Summary

Qualified Default Investment Smart LifeCycle 2020-2060 Funds

Roth Allowed Yes

Eligibility18 Years of Age. Immediate with auto enroll @ 5% after 30 days. Auto increase of 1%

annually, to a maximum of 10%.

Entry Dates Per Pay Period

Change Dates Per Pay Period

Employer ContributionsDiscretionary. Eff. 4/8/16: 100% of each dollar contributed, up to a salary deferral of 5% of

your pay.

Contribution Vesting Year 1: 25%, Year 2: 50%; Year 3: 75%, Year 4: 100%

Maximum Employee

Contributions90%

Contribution Type Allowed Percentage


Retirement Plan Industry Spotlight

The Department of Labor finalized the Conflict of Interest Rule (“Fiduciary Rule”) in

April 2016. This will expand the definition of “fiduciary” and will require advisors to

act as a fiduciary to clients. (Source: dol.gov)

Litigation in plans is accelerating. The majority of litigation appears to be focused

on fees, for example plans not using the most competitive share class available to

them. (Source: planadviser.com and NAPA-net.org)

Fee levelization (returning investment revenue sharing directly back to each

investor individually) and more sponsor paid fees are gaining traction. (Source: planadviser.com)

Money market reform is creating an increased scrutiny of the appropriateness of

money markets as an investment option in retirement plans. (Source: plansponsor.com)


Retirement Plan Industry Spotlight

The implementation and use of Financial Wellness Programs, with an emphasis on

behavioral finance, is rapidly expanding. (Source: usatoday.com)

The use of 3(38) fiduciary services are continuing to increase (a 3(38) fiduciary will

monitor and replace investment managers as it deems necessary and appropriate

in its sole discretion). (Source: plansponsor.com)

Use of target-date and passive investment options is accelerating. (Source: Brightscope/ICI Defined Contribution Plan Profile)

Plan Design Trends: Use of automated plan features (enrollment, deferral increase)

and Roth contributions are continuing to increase. (Source: Callan 2016 Defined Contribution Trends)


Plan Cost Summary

0.70%The sum of all estimated plan costs including the administration, record-keeping, advisory,

fiduciary, consulting, financial wellness and investment expenses. This fee does not include

transactional expenses such as loans or distributions.TOTAL PLAN COST

The estimated costs that are assessed against plan assets.

CONTRACT ASSET CHARGE: 0.17%

EMPLOYER PAID COST:The total of all employer paid costs.

0.00%

WEIGHTED INVESTMENT COST:The estimated weighted investment expenses based on participant allocations.

This includes Investment Management costs plus any revenue sharing (if

applicable).

0.53%ADMINISTRATION & RECORDKEEPING SERVICES:The revenue requirement to perform the Plan Administrative and

Record-keeping functions.

PENSIONMARK SERVICES:

The revenue requirement to perform the plan advisory services which

includes Plan and Fiduciary Support, Investment Services, and

Employee Financial Wellness Program.

COST BREAKDOWN

0.23%

0.17%

HOW ARE THESE COSTS ASSESSED?

INVESTMENT MANAGEMENT:

The cost of investment management services, net of revenue used to

offset plan expenses.

0.30%

(as of 12/31/2015)


Historical Plan Cost

1.43% 1.43%

1.15%

1.02%

0.96%0.92% 0.92%

0.74% 0.74%0.70%

12/31/2002 12/31/2003 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016


Plan Assets/Participant History

0

50

100

150

200

250

300

350

400

450

500

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

Particip

ant B

ala

nce

sPla

n A

ssets

CURRENT PARTICIPANT BALANCES

312

CURRENT PLAN ASSETS

$42,000,152

AVERAGE PARTICIPANT BALANCE

$134,616


Represents the average

deferral percentage of all

eligible employees.



eligible highly

compensated employees.

Plan Testing History



eligible non-highly

compensated employees.

5.6%

5.8%

6%

6.2%

6.4%

6.6%

6.8%

7% Historical NHCE ADP

6%

6.5%

7%

7.5%

8%

8.5% Historical HCE ADP

HCE ADP

8.10%

NHCE ADP

6.90%

ADP

7.30%


Loans Summary

CURRENT LOAN BALANCE

$880,253

OUTSTANDING LOANS

72

AVERAGE LOAN BALANCE

$12,226

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016

Ave

rag

e L

oan B

ala

nceTo

tal L

oan B

ala

nce


$1,059,868

($347,807)($159,184)

$115,526

($2,189,484)

$1,776,557

$450,127 $581,208

($3,000,000)

($2,000,000)

($1,000,000)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

12/31/2003 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2014 12/31/2015 12/31/2016

Cash Flow Summary (12 month)

Contributions Distributions Net Cash Flow

The sum of all monies in and out of the

plan, charted below.NET CASH FLOW

Contributions: $5,477,542

Distributions: ($4,896,334)

$581,208




PLAN HEALTH ANALYSIS

Sample 401(k) Plan


Current Plan Health

Total Plan Health Score is derived by determining to what degree the Plan is meeting

participation, deferral, and diversification goals. A score of 100 indicates a Plan is

meeting or exceeding goals in all three categories.

15

Current Plan Health Score:

Goals as identified:

• Plan Participation Rate:The percentage of eligible employees participating in the Plan.

• Participant Deferral Rate:The average deferral rate of participating employees. Does not

include any employer contributions.

• Participant Diversification:The percentage of employees in a diversified investment

portfolio (typically 3 or more investment choices or an asset

allocation fund).

93

95%

8%

90%


Historical Plan Health Score

77

9492

9093

85

9092 93

0

10

20

30

40

50

60

70

80

90

100

12/31/2003 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016


Participation Health Score

73%

93.7% 92% 90% 91.69% 91.2% 92.51% 92.5% 92.73%

0%

20%

40%

60%

80%

100%

120%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% o

f Sta

ted

Go

al

Pla

n P

art

icip

atio

n R

ate

Plan Participation % of goal

Goal Current % of Goal

Participation Rate 95% 92.73% 97.61%


Deferral Health Score

7.58%

7.17%

6.89%

7.42%

7.24%

6.88%

7.3% 7.3%

80%

82%

84%

86%

88%

90%

92%

94%

96%

6.4%

6.6%

6.8%

7%

7.2%

7.4%

7.6%

7.8%

12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016

% o

f Sta

ted

Go

al

Pla

n D

efe

rral R

ate

Plan Deferral Rate % of goal


Deferral Rate 8% 7.30% 91.25%


Diversification Health Score

81% 81% 80% 80%

62.7%

78.4% 78.2% 79%

0%

20%

40%

60%

80%

100%

120%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016

% o

f Sta

ted

Go

al

Pla

n D

ivers

ific

atio

n R

ate

Plan Diversification % of goal


Participant Diversification 90% 79.0% 87.78%

Documents

PLAN HEALTH REPORTccrs.biz/wp-content/uploads/2017/10/Year-End-2016-Sample-Plan-He… · Page 5 Sample 401(k) Plan | Plan Health Report Plan Summary Qualified Default Investment Smart