Schwab Retirement Technologies, Inc. Schwab RT Web 4.0 Morningstar Advice User Guide

Transcription

1 Schwab Retirement Technologies, Inc. Schwab RT Web 4.0 Morningstar Advice User Guide

2 Schwab RT Web Morningstar Advice June 20, 2011 The material contained herein is proprietary to Schwab and for informational purposes only. The information is not intended to provide tax, legal or investment advice. Schwab does not guarantee the suitability or potential value of any particular information source. Certain information presented herein may be subject to change. The information or material contained in this document may not be copied, assigned, transferred, disclosed or utilized without the express written approval of Schwab. The Charles Schwab Corporation provides services to retirement plans and participants through its subsidiaries: Charles Schwab & Co., Inc.(Member SIPC), Charles Schwab Trust Company, a division of Charles Schwab Bank, Schwab Retirement Plan Services, Inc., Schwab Retirement Plan Services Company and Schwab Retirement Technologies, Inc. (Schwab RT). Schwab RT is engaged in developing and licensing proprietary retirement plan recordkeeping systems to independent Third Party Administrators. For further information, contact Schwab Retirement Technologies, Inc. at Ballantyne Corporate Place, Suite 300, Charlotte, NC 28277, USA, Tel: (800) , Web site: schwabrt.com Schwab Retirement Technologies, Inc. All rights reserved.

3 Table of Contents Overview...4 Fast Track...6 Enabling and Defining Morningstar Admin Settings...7 Defining Morningstar Advice Settings for the Plan...9 Excluding Investments from Morningstar Advice Realignments...13 Running the Morningstar Batch Export...16 Tracking Morningstar Participant Activity...17

4 Overview Through an interface with Morningstar, Schwab RT offers tailored 401(k) investment advice and tools for clients subscribing to Morningstar Retirement Manager, an online investment education, research and advice service. Through an interface between Schwab RT Recordkeeping and Morningstar Retirement Manager, recordkeepers are able to offer an investment guidance and advice tool to their plan sponsor clients. Linking from Schwab RT Web, plan participants have access to specific investment recommendations regarding their core retirement plan assets. Schwab RT has established data feeds to enable transfer of plan details and participant information from its recordkeeping system to Morningstar Retirement Manager. The service, which offers sophisticated research, education, investment guidance, and advice to all levels of retirement plan participants, is fully integrated with Morningstar's proprietary stock and mutual fund databases. This integration allows Morningstar Retirement Manager to provide asset-allocation suggestions and specific investment advice that takes all of an individual's retirement assets into consideration. Participants can request a realignment and/or investment election change directly from the Morningstar site. Transactions initiated on the Morningstar site are communicated back to the Schwab RT system via a new API call in SDDA that results in the creation of PSR records that participants can view and/or cancel on the My Money Web site. A subset of plan and participant data will be passed between Schwab RT and Morningstar. Plan data is sent in batch mode; participant data is sent in real time. June 2011 Schwab Retirement Technologies Page 4 of 17

5 Data Integration Morningstar uses XML format to receive plan-level information for Morningstar Retirement Manager data collection. The specific data points as well as the format for each are outlined in the Morningstar document Retirement Manager XML Plan Data Specification. In the Plan Level Data: Detailed Element Descriptions section of this document, Schwab RT adds a Data Location column at the end of the table to identify the data integration points Schwab RT uses for the Morningstar data extract. Schwab RT Client Services will provide you with a copy of the Retirement Manager XML Plan Data Specification document when you contact them for coordination assistance. Contact Information Implementation of the Morningstar Advice feature requires a contract agreement with Morningstar and coordination assistance from Schwab RT. Please contact Schwab RT Client Services at for more information. Morningstar contact information: Sebastian J. Mitchell, Sales Director Morningstar Associates, LLC 22 W. Washington Street, Chicago, Illinois voice mobile fax sebastian.mitchell@morningstar.com The Morningstar Retirement Manager advice program is provided by Morningstar Associates, LLC, a registered investment advisor and a wholly-owned subsidiary of Chicago-based Morningstar, Inc., a global investment research firm. Morningstar, Inc. s extensive line of Internet, software, and print services offers news, data, and analysis on stocks, mutual funds, closed-end funds, and variable annuities. June 2011 Schwab Retirement Technologies Page 5 of 17

6 Fast Track The following Fast Track provides a complete procedural roadmap for configuring and using Morningstar Retirement Manager. The highlighted task is performed by the participant, all other tasks are configuration settings defined by the recordkeeper and/or administrator. Prerequisites: Prior to configuring the Morningstar feature, you must complete the required contract agreement with Morningstar and request coordination assistance from Schwab RT. In order to communicate with Morningstar, your Recordkeeping data must be properly mapped to Morningstar's data elements. Application Window/Page Task Schwab RT Admin Schwab RT Recordkeeping Plan Options > Advice and Planning Options Web Options > Service Provider Options > Morningstar Retirement Manager Menu Manager Plan Maintenance/C001 > Other Plan Features Plan Maintenance/C001 > Source Level Options/ Investment Level Options Morningstar Batch Export/C192 Select the Enable Morningstar Link option. Define the Timeout and Company ID settings. Add predefined Morningstar menu link and customize as needed. Define the settings on the Morningstar Advice tab. Set option to Allow Advice Realignments Select plans, enter the location of the export file, and click Process. Schwab RT Web Any page in MyMoney Web 4.0 Select Morningstar link to access Retirement Manager options. June 2011 Schwab Retirement Technologies Page 6 of 17

7 Enabling and Defining Morningstar Admin Settings This section identifies Schwab RT Admin settings used to enable and configure the Morningstar Retirement Manager option for the My Money participant Web. Plan-Level Web Admin Settings To enable Morningstar functionality for the plan, log in to Schwab RT Admin, go to Plan Options>Planning and Advice Options and select the Enable Morningstar Link option. Note: The plan-level Morningstar option will be renamed to Morningstar Retirement Manager in a future release. System-Level Web Admin Settings System-level Morningstar settings (Timeout and Company ID) are defined via the Web Options>Service Provider Options. June 2011 Schwab Retirement Technologies Page 7 of 17

8 Field Definitions System level Morningstar settings are described below: Timeout Company ID Maximum amount of time (in seconds) that is allowed between the initial request and Morningstar's requesting data from the Data and Transaction Service. If the time exceeds this amount, the request times out. The identifier that is assigned by Morningstar. Adding and Customizing the Morningstar Menu Option You can use Menu Manager to add the Morningstar predefined element, shown below, to the participant Web menu. After adding the menu element, you can rename it, if needed, to something more meaningful to your participants. (Example: Investment Advice). Note: The Morningstar menu element will be renamed to Morningstar Retirement Manager in a future release. June 2011 Schwab Retirement Technologies Page 8 of 17

9 Defining Morningstar Advice Settings for the Plan This section identifies plan settings in Schwab RT Recordkeeping that are used to configure the Morningstar export function. The Morningstar Batch Export/C192 application extracts XML plan data from fields defined on the Morningstar Advice tab, located on the Other Plans Features window in Plan Maintenance/C001. When a plan is to be closed to Morningstar access, the Morningstar Status should be changed to Pending Closed. The plan batch extract will send it one time to Morningstar and then set the status to Closed. No Closed plans are extracted. The status must be manually changed in Plan Maintenance before it can be extracted again. Note: Online Advice is currently, the only fully supported Morningstar service option available for use with Schwab RT Web. Functionality for QualMRP and Portfolio Models service options is limited to the Morningstar Plan Batch Extract module in Recordkeeping. June 2011 Schwab Retirement Technologies Page 9 of 17

10 Field Definitions The fields on the Morningstar Advice tab are described below: Client ID Service Options Program Fees Enable Stock on Advice Enable Auto Enroll Alpha-numeric ID (4 characters maximum) that is assigned by Morningstar and passed to Morningstar in the batch export. This field is required for the Batch Extract (C192). These options represent modules that can be purchased from Morningstar. Select one or more of the following options: QualMRP Online Advice Online Call Center Proposal Online Guidance Portfolio Models The QualMRP and Portfolio Models service options cannot be selected at the same time. The following fields are enabled only when either the QualMRP or Portfolio Models Service Option is selected: Asset Minimum/Maximum (Default = 0) Basis Points (Default = 0) Caution: If you leave the Asset Maximum field blank, there will be no maximum value applied by the system. Select this option to allow the Morningstar Batch Export to provide advice on stock funds. The check box is clear by default. Unless this option is selected, data relating to company stock will be ignored by the Morningstar (C192) application. This option is extracted as COMPANYSTOCK STOCKFLAG with Y or N values. Note: The Morningstar extract handles unitized or Real Equity investments as stock investments. Select this option if the plan allows participants to be automatically enrolled in Morningstar Managed Accounts. This option is enabled only when the QualMRP Service Option is selected (Default = OFF). Refer to Morningstar for more information on how this setting may impact your service. June 2011 Schwab Retirement Technologies Page 10 of 17

11 Portfolio Models When Portfolio Models is selected, the following fields are enabled: Rebalance Frequency Available options: 100 Monthly 101 Quarterly 105 Semi-Annually 106 Annually Model Type Available options: 1 Risk3 2 Risk4 3 Risk5 4 Time5 5 Time10 6 Hybrid310 In Retirement Transaction Type Does the plan support Morningstar's in retirement de-accumulation functionality for users whose date of birth is greater than 50? Available options: 0 Not Available (Default) 1 Available Refer to Morningstar for more information on how this setting may impact your service. Select one of the following options: 0 No Transaction (Default setting. No transactions are sent back to the plan.) 1 Direct Transaction (Transactions are sent directly back to the plan to be implemented on the back end.) 3 Re-direct the transaction (The system sends the transaction back to the plan and it is posted to a page on the pan s Web site. Participants can then implement transactions from the Web page. This field is extracted as TRANSACTIONTYPE. June 2011 Schwab Retirement Technologies Page 11 of 17

12 Morningstar Plan Type Non Advisable Plan Type Morningstar Status Select one of the following options: 01 : 401(K) 02 : Thrift 03 : Profit Sharing 04 : Money Purchase 05 : 403(B) 06 : Sup 403(B) 07 : 457(B) 08 : 401(A) 09 : Non Qualified 10 : Simple IRA 11 : Sep IRA 12 : Traditional IRA 13 : Roth IRA 14 : Rollover IRA 15 : Non Qualified VA 16 : Taft Hartley 17 : Non Advisable Enabled only if Morningstar Plan Type is 17: Non Advisable, disabled otherwise. If enabled, select one of the following options: 31 : ESOP 32 : Profit Sharing 33 : Money Purchase 34 : Non Qualified Select one of the following options: Open Pending Closed Closed Activity tracking is performed for the following fields: Field Name Tracking Code Morningstar Plan Type 1562 Non Advisable Plan Type 1563 Morningstar Status 1564 June 2011 Schwab Retirement Technologies Page 12 of 17

13 Excluding Investments from Morningstar Advice Realignments In Plan Maintenance/C001, VSR/OPI logic automatically includes investments in Morningstar Advice realignment transactions. If an investment is not included, it is treated as frozen fund and will not be included in any rebalance transactions that result from a Morningstar Advice interaction. To allow you to exclude investments from Morningstar Advice realignments, an option, Allow Advice Realignments, is provided at both the source and investment level. This option is turned on by default and must be turned off to exclude investments from Morningstar realignments. Source Level Options The source level Allow Advice Realignments option is located on the Select Sources window as well as the VRS/OPI Controls (Source) window. The option is selected by default. The Select Sources window appears below. June 2011 Schwab Retirement Technologies Page 13 of 17

14 The VRS/OPI Controls (Source) window appears below. June 2011 Schwab Retirement Technologies Page 14 of 17

15 Investment Level Options The Investment level Allow Advice Realignment option is located on the Select Investments window and on the VRS/OPI Controls (Investment) window. The option is selected by default. The Select Investments window appears below. The VRS/OPI Controls (Investment) window appears below. June 2011 Schwab Retirement Technologies Page 15 of 17

16 Running the Morningstar Batch Export You can use the Morningstar Batch Export window to select the plan or plans to be exported and to define the location of the export file. To process the file, select Process from the Options menu. Only Morningstar plans with the Morningstar Status of Open or Pending Closed are available for selection. Field Definitions The fields on the Morningstar Batch Export window are described below: Select Plans Export File Name Under Select Plans, choose the plan(s) to include in the export. You can select a single plan, multiple plans, or all plans. Only Morningstar plans with the Morningstar Status of Open or Pending Closed are available for selection. The following plans are not available for selection: Plans with a Morningstar Status of Closed. Plans which do not have Morningstar Plan Type defined. Non Advisable plan types. Enter the location to which the PlanData.xml file is to be saved. June 2011 Schwab Retirement Technologies Page 16 of 17

17 Tracking Morningstar Participant Activity You can use the Participant Advice window in Participant Maintenance/C004 to view the current status and past history of a specific individual s participation in various Morningstar services. These options are also available in Participant Inquiry. Note: The participant Status is not currently supported by Schwab RT. This functionality will be provided in a future release. Field Definitions The fields on the Participant Advice window are described below: Status Begin Date/ End Date Participant Directed Identifies the Morningstar service option that is active for the corresponding date range. The first entry represents the current status, followed by past activity. If the participant opts out of the service, the status changes to Opted Out. The status Morningstar Managed Accounts is available only when the QualMRP Service Option is selected in Plan Maintenance. The status Morningstar Advice is available only when the Online Advice Service Option is selected in Plan Maintenance. The time period (date and timestamp) associated with the current or past Status. Indicates whether the current status was the result of action taken by the participant (True) or by changes in plan administration (False). Notes: If no Morningstar records exist for the participant, only the column headers will display on Participant Advice window. If you change a plan s service option from Morningstar Managed Accounts to Morningstar Advice, the system will display a message that indicates the number of participants currently enrolled in the service who will be opted out and ask you if you wish to continue. If you choose to continue, the system will log all participants out of Managed Accounts and stamp it with the current system date (not the plan date). June 2011 Schwab Retirement Technologies Page 17 of 17