Multiple Self-Directed Brokerage Accounts (SDBA) Release Notes

Transcription

1 Schwab RT SQL Recordkeeping Operations Library Multiple Self-Directed Brokerage Accounts (SDBA) Release Notes Note: This document covers only SDBA enhancements for Release 3.0. For comprehensive SDBA information, refer to the SDBA User Guide (revisions available shortly).

2 Schwab RT Recordkeeping Operations Library Multiple Self Directed Accounts (SDBA) Release 3.0 Release Notes October 31, 2008 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 (Charles Schwab) provides services to retirement plans and participants through its subsidiaries, Charles Schwab & Co., Inc. (Member SIPC), The Charles Schwab Trust Company (CSTC), Schwab Retirement Plan Services, Inc. and Schwab Retirement Technologies, Inc. (Schwab RT). Charles Schwab also provides equity compensation plan services and other financial and retirement services to corporations and executives through Charles Schwab & Co., Inc. For further information, contact Schwab Retirement Technologies, Inc. at Ballantyne Corporate Place, Suite 300, Charlotte, NC 28277, USA, Tel: (800) , Web site: schwabrt.com. 2008, Schwab Retirement Technologies, Inc. All rights reserved.

3 Contents Table of Contents The Recordkeeping Operations Library...5 Multiple Self-Directed Brokerage Accounts (SDBA)...6 SDBA Data Stored in Recordkeeping:...7 Prerequisites...8 Multiple SDBA Setup Overview...9 Multiple SDBA Processing Overview...9 Fast Track (Multiple SDBAs)...11 Recordkeeping Configuration...11 Configure Web & Voice (Schwab RT Admin)...12 Participant Web Options...12 SQL Recordkeeping Setup and Configuration...13 Multiple SDBA Provider Setup (C282/RK SQL System Maintenance...13 Mapping External SDBAs (C002/Investment Maintenance)...14 TDI Maintenance Settings for Link Plan Setup for Multiple SDBAs (C001/Plan Maint. & C071/Plan Inq.)...17 Participant Multiple SDBA Setup (C004/Participant Maint. & C071/Participant Inq.) Deleting SDBAs (C999/Purge Utilities)...22 Setting up SDBAs through ADT Synoptic (C150/ADT)...22 Processing Multiple SDBAs...23 Lump Sum and Force Out Requests (C090/Lump Sum Dist., C150/ADTFIN, and C552/OPI Update)...23 Loan Processing...27 In-Service Withdrawals (C091/In-Service Withdrawal)...29 Transfers and Exchanges with SDBAs...32 Reversing Transactions (C034/Reverse Transactions)...34 Modifications to C000/Start a New Day...34 Adding SDBAs to a Fee Schedule (C030/Fee Schedule Maintenance)...34 C177/Charles Schwab Trust Co. SDBA Cashiering Export...35 C187/Fidelity SDBA Money Movement...36 Closing a SDBA (C999/Purge Utilities)...36 Reporting Participant SDBAs...38 Reporting Multiple SDBAs (CP07/Plan Digest)...38 Reporting SDBAs to the Participant Master Report (CP23/Utility Reporting) C158/Participant Data Extract...40 Refresh Lite (C551)...40 Participant Statements with SDBAs (CP20/Statement Generator)...41 SDBA SQL Extracts (CSQL)...41 CP50XI/SDBA Provider Reporting...42 Schwab RT Web Options for SDBAs...50 Configuring Schwab RT Web (Schwab RT Admin)...50 Participant Web Options...51 Schwab Retirement Technologies

4 Contents SchARP Fee Processing...53 Appendix: Schwab PCRA Link (EAO)...54 Administration Settings...55 Participant Access to the PCRA Site...58 Schwab Retirement Technologies

5 The Recordkeeping Operations Library The Schwab RT SQL Recordkeeping Operations Library provides you with topicspecific documents available for recordkeeping system processes. Collectively, these documents comprise Schwab RT s Recordkeeping System Manual of modular individual topics that can be individually maintained with current information, for on-demand downloading and printing. Topic-specific documents coordinate with the Recordkeeping online Help system, and overcome printing limitations with on-line html Help pages. Additional technical setup procedures and tips might be included in topic-specific documentation that is not pertinent to the on-line Help. If you are new to Schwab RT you may also want to refer to our SQL Plan Setup and Maintenance Application Manual for overviews of many key SQL Recordkeeping concepts and setup options. Where to Find Additional Information Additional assistance for use of SDBAs with recordkeeping is provided within Schwab RT Recordkeeping's on-line help. For more information about Schwab RT SQL Recordkeeping, please refer to the system manuals available from the SchwabRT Product Resource Center at schwabrt.com. Support can be reached through Schwab RT Professional Services at October, 2008 Schwab Retirement Technologies Page 5 of 65

6 Multiple Self-Directed Brokerage Accounts (SDBA) Note: If you plan to implement multiple SDBAs, please contact Schwab RT Client Services at (800) for assistance with activation. SDBA DICTIONARY Effective with Release 3.0, the following terminology is adopted for the Schwab RT Recordkeeping system: SDBA or Multiple SDBA (MSDBA) Self-Directed Brokerage Accounts. Internal SDBA Schwab Self-Directed Brokerage Account, also known as Schwab PCRA (Personal Choice Retirement Account ). External SDBA Non-Schwab Self-Directed Brokerage Account. Provider ID--The brokerage firm providing the account. Charles Schwab is the default for Internal SDBAs. SDBAs allow participants to invest all, or a portion of their account balances, in their choice of investments offered by any brokerage firm. SDBAs require a relationship with an individual brokerage firm able to offer this capability. Third-party plan administrators (TPAs) can support plan sponsors who want to offer participants multiple self-directed brokerage accounts (from both Schwab and external providers) in conjunction with the expansions to accommodate 60 sources and 200 investments. Export and import files are processed through SchwabLink software using Link 20 reflecting SDBA values as a dollar-par-asset in Recordkeeping. The system monitors available liquidity in SDBAs and automates processing for distributions, fund transfers, and loans. Recordkeeping tracks the total SDBA investment, but not the underlying SDBA investments chosen by participants. System Maintenance settings define multiple SDBA Providers with their corresponding Web site addresses, which plan participants can then access from Schwab RT Web links on the Participant Summary page. Schwab PCRA links on the Web are restricted by the number of Internal SDBAs allowed by the plan but otherwise remain unchanged. The maximums allowed per plan are defined in Plan Maintenance and can be viewed by participants on the Web Plan Summary page. Current participant SDBA Balances display in Participant Inquiry and at the investment level in the SDBA Balance File Maintenance application. Each SDBA at a participant level is mapped as a unique investment so that SDBA balances update correctly and are reported separately. Sources can be assigned to a specific account so that Roth money, for example, can be directed into a specified Roth account. Import/Export files support multiple SDBA Accounts. Transfers, Loans, and In-Service Withdrawal processing remains the same, however, the Lump Sum distribution process restricts the distribution to the liquid portion of an SDBA and blocks a participant who is not liquidated 100%. New SDBA Provider Reports in CP50XI/RK SQL Reports Generator provide SDBA balance information by provider, plan, or investment. Participant Statements use account description (if available) on the statement for SDBA investments so the participant can distinguish one account from another. October, 2008 Schwab Retirement Technologies Page 6 of 65

7 SchARP Fee processing supports multiple SDBAS with an option that permits charging a fee based on the number of SDBA accounts established for each participant. In addition, you can include or exclude SDBA investments when calculating the fee basis. Notes: When setting up multiple PCRA investments (internal SDBAs only) all CUSIPs must be set to PCRA. Newkirk and SCICOM estatements will be addressed in a future release to include SDBA account descriptions. SDBA Data Stored in Recordkeeping: Total market value of SDBAs, reported daily through a dollar par fund. Amount invested in the underlying investments. Amount in a Money Market investment. Pending amount activity. SDBA liquidity balance the cash portion of the SDBA for processing various types of liquidations, including: distributions, loans, loan available amounts, and hardship withdrawals. The SDBA Market Value in each source for each day, with the ability to report the daily balance through Schwab RT Voice and Web. These values are imported daily from the partnering brokerage firm. When you import values, Schwab RT Recordkeeping prorates SDBA s total market values across each source where SDBA investments exist. Any variance between Schwab RT Recordkeeping and the brokerage account balance results in a transaction to balance the accounts so that one mirrors the other. The Cashiering Export creates an export file containing sales or purchases of the SDBA investment, including contributions and transfers. Run the Export module while batches are still pending prior to releasing. The system creates one cash movement record for each participant s total purchases and one cash movement record for each participant s total sales. Records for participants SDBAs are maintained in Schwab RT Recordkeeping using applications originally created for Charles Schwab s Personal Choice Retirement Accounts (PCRAs). Consequently, references to applications and file names may reflect PCRA even though you may be using them to maintain SDBAs held outside of Schwab. Schwab accounts are now referred to as Internal SDBAs and non-schwab accounts as External SDBAs. When you prepare the system for SDBAs, you must specify at the plan level whether you are using Charles Schwab Broker/Dealer and/or Charles Schwab Trust Co. for trading to allow the Cashiering Export to identify the directory in which files are stored. These settings are located on the TDI Maintenance/Maintain Links window for Link 20. October, 2008 Schwab Retirement Technologies Page 7 of 65

8 Prerequisites Schwab RT SQL Recordkeeping 3.0 (or later) Microsoft SQL Server 2005 SP1 Microsoft Windows Server 2003 SP1 Schwab RT Web or Voice to provide participant access to daily balances. SchwabLink brokerage software for Schwab and to modify brokerage data to Schwab standards before using an outside brokerage. TDI can process SDBAs with any brokerage firm through Link 20: Charles Schwab. For SchARP requirements, refer to SchARP Overview, Release 3.0. For ASP customers, SchARP requirements will be implemented automatically. October, 2008 Schwab Retirement Technologies Page 8 of 65

9 Multiple SDBA Setup Overview Configure multiple SDBAs as separate accounts for both internal and external types as follows: Recommended Setup Overview: Optional setup per Provider: Recordkeeper creates a separate investment for each of the internal and external accounts allowed by the plan. Add accounts to the plan. Map participant accounts by account type (Internal or External). The same external investment can be mapped to different providers at the participant level. This approach allows you to report separate balance information for Internal and External accounts. If you need to display external SDBA balances separately create one investment per provider by doing the following: 1. Create a separate investment for each of the internal and external accounts allowed by the plan. 2. Add the accounts to the plan. 3. The same external investment can be mapped to different providers at the participant level. Map the participant accounts on the basis of the account type (Internal or External). 4. Create separate investments for each provider, naming the investment to reflect the provider, using the following convention: SDBA ID: <Provider Name> Investment. If multiple accounts exist for a provider, you will need to create multiple investments and then map them to that same provider. Investments are added to the plans based on plan/provider relationship. Participant accounts are mapped through Participant Maintenance to the correct investment representing the provider. Multiple SDBA Processing Overview The following page illustrates basic set up steps for multiple SDBA investments with examples of two participants with various sources/investment elections. In Step 1, you will create a provider list. Step 2 creates and attaches new funds to Link 20 and elects external SDBAs (non-schwab). In Step 3 you attach the SDBAs to plans and limit the number of internal and external SDBAs allowed by the plan. Finally, you add the participant s SDBAs to appropriate plan sources according to plan settings. Steps 1 and 2 are new with this release. Step 3 uses previously existing functionality. SDBA Trade Processing Note: Although current trade processing steps are not changed for multiple SDBA processing, external SDBAs require a longer delay for market value file processing. October, 2008 Schwab Retirement Technologies Page 9 of 65

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11 Fast Track (Multiple SDBAs) Fast Track procedures provide a convenient procedural roadmap for configuring and using SDBA (including PCRA) options in SQL Recordkeeping, Web, Voice, SchARP, and Call Center applications. Recordkeeping Configuration Log on to SQL Recordkeeping and complete the following tasks, saving all settings: C282 Create Provider ID List p. 13 In C282/RK SQL System Maintenance, set up a Provider List. The application assigns unique IDs for each multiple SDBA investment, both for Schwab (internal) and non-schwab (external) SDBAs. The Recordkeeper can add, delete, or modify entries in the Provider List. C046 Link 20 Account Settings for CSTC and CSBD p. 16 Use C046/TDI Maintenance to maintain/set account numbers and drive settings for Charles Schwab Trust Company and/or Charles Schwab Broker/Dealer. C002 Link multiple SDBAs to Link 20 p. 14 Use C002/Investment Maintenance to create and assign uniquely identified SDBA investments to Link 20:Charles Schwab. You can enter a new Investment ID to Create a New Investment or choose to Copy an Existing Investment. Select the External SDBA check box option for non-schwab accounts. If this is not selected, the account is treated as an Internal Schwab account. C001 Attach multiple SDBAs to Plans p On the C001/Plan Maintenance>Other Plan Features>Other Plan Features Cont. tab designate the maximum number of Internal and External SDBA investments allowed for the plan. One is allowed by default if the plan has one SDBA investment and 0 if no Schwab SDBA is currently attached to the plan. If the PCRA Trading Link is 1-Schwab Broker/Dealer Link, External SDBA accounts are not permitted. 2. Open the General Source Data window to update the Number of Investments in the source. 3. From the General Investment Data window, select the Investment Positions created for the source. C004 Mapping Providers to Participants p Open the C004/Participant Maintenance>Access window and select a plan and participant. 2. From the SDBA window, you can then manually add or modify participant account information for multiple SDBA investments. C150 Setting up participant SDBAs in ADT p. 22 In C150/ADT Synoptic you can select appropriate runtime options for multiple SDBA investments. If the Investment ID in the batch file contains mapping to a Schwab Account #, the existing SDBA account information is updated with the new settings. If this does not exist, a new SDBA account is created. October 2008 Schwab Retirement Technologies Page 11 of 65

12 Configure Web & Voice (Schwab RT Admin) Log on to Schwab RT Admin and complete the following tasks, saving all settings: ADM Enable display of SDBA Rules on Plan Summary page p. 50 Go to Plan Options>Environment Options and enable the following options: Display Number of Internal Accounts Allowed and Display Number of External Accounts Allowed. ADM Activate/Configure Schwab PCRA Interface p Contact Schwab RT Professional Services to request PCRA activation. 2. In Schwab RT Admin, go to Web Options> Service Provider Options, select Schwab 401(k) Tools/PCRA, and define the settings. 3. In Schwab RT Admin, go to Plan Options>Advice & Planning Options, select Enable Schwab PCRA Interface and appropriate planning options. 4. In Schwab RT Admin, go to Web Options>Menu Manager and add the pre-defined menu element Schwab PCRA to the participant menu. Note: See Appendix for Schwab PCRA configuration details. Participant Web Options Participants log on to Schwab RT Web and do the following: WEB Access/Modify SDBA Account Information p. 51 On the participant Web menu, select Participant Summary, where you can do the following: View SDBA account information Access SDBA provider Web site (if available) Modify the SDBA account description. WEB View SDBA Plan Rules p. 53 On the participant Web menu, select Plan Summary, where you can view the number of internal or external accounts allowed by the plan. WEB Open PCRA Account p On the participant Web menu and select Schwab PCRA. 2. On the Disclosure Notice page, click I Accept. 3. System directs participant to Schwab PCRA page where participant can open an account. October 2008 Schwab Retirement Technologies Page 12 of 65

13 SQL Recordkeeping Setup and Configuration Multiple SDBA Provider Setup (C282/RK SQL System Maintenance A new User Maintenance/Provider window and Provider ID settings in C282/RK SQL System Maintenance activate Multiple Self-Directed Brokerage Accounts for participants. The Provider Name is mapped to the participant SDBA through Participant Maintenance. The Recordkeeper can maintain add, delete, or modify the Provider Names, which include both Schwab and non-schwab providers. The Provider Web Site column contains Web links associated with the Provider Name. Add: New Provider Names must be unique. When you click Add the system displays the Provider Add/Edit dialog and a Provider Name and optional Web site link fields. If the name you attempt to add to this field already exists, an error message appears stating that it cannot be added. October 2008 Schwab Retirement Technologies Page 13 of 65

14 Delete: If you attempt to delete a Provider Name that is currently attached to a participant s account, an error message appears. If the Provider ID is not currently attached to a participant s account the system asks you to confirm the deletion: Are you sure you want to Delete record for <Provider ID>? Click Yes to accept the deletion, or click No to cancel. Alternatively, you can press Shift-Delete instead of clicking Delete. Edit: Click Edit to maintain a Provider in the list or highlight the Provider you want to modify and double-click. After modifying a Provider Name or Provider Web Site, click OK to confirm or Cancel to cancel changes. After making changes to the Provider Names, click OK. Mapping External SDBAs (C002/Investment Maintenance) In previous releases, Link 20 Charles Schwab vendor trade link was limited to one investment. Participants can now open multiple SDBAs so multiple investments allow each account to be represented by a unique investment in the plan. The Import Investments feature in Investment Maintenance imports multiple SDBA investments from an Import file. Multiple investments can be mapped to Link 20 by doing the following: 1. From the Add Investment window, select either Create a New Investment or Copy Investment ID. If you enter a new Investment ID, the system creates the new Investment ID when you click Insert. If you select the copy option, select an existing SDBA investment to copy and then enter an Investment ID. Then click Insert. If you do not enter a new Investment ID, the system allows you to maintain an existing SDBA investment. 2. From the Synoptic window, select Link 20:Charles Schwab SDBA for the Vendor Link Code so that the investment is considered a SDBA investment. October 2008 Schwab Retirement Technologies Page 14 of 65

15 3. From the Characteristics/Other Features window, select the appropriate setting for External SDBA. Select the External SDBA check box only for a non-schwab (external) investment. Clear the External SDBA check box for a Schwab investment (default setting for vendor link code 20:Charles Schwab). 4. Set other information for the investment and then click Save. The system updates the new PCRA investment. Activity tracking is updated with all changes and settings. 5. Optionally, repeat steps 1-4 until the number of SDBA investments matches the maximum number of accounts you determine for the number of internal and external SDBAs for plans in the selected Plan Group. October 2008 Schwab Retirement Technologies Page 15 of 65

16 TDI Maintenance Settings for Link 20 To access the applications used to maintain SDBAs, you must set the TDI Master Link Account Number setting in TDI Maintenance. This allows you to create the necessary files for the SDBA investment. To activate SDBA functionality, do the following: From C046/TDI Maintenance, open the TDI Master Links window. Use the following values for the Trade Link settings to activate an SDBA: The first three-digit entry is used for Charles Schwab Trust Company PCRA; the second threedigit entry is for activating an External SDBA (through Charles Schwab Broker/Dealer): XXX>J, YYY>J Where XXX is your organization s retirement plan administrator identifier (RPA) assigned by your brokerage firm for internal SDBAs (CSTC). YYY designates the RPA for an External SDBA. This allows the vendor to return trades to the correct client. If using both Schwab Internal and non-schwab External SDBAs, these settings are separated by a comma. <J designates a UFTU directory that is not on your C:\root directory. No parameter is required if the UFTU directory is located on C:\. October 2008 Schwab Retirement Technologies Page 16 of 65

17 Plan Setup for Multiple SDBAs (C001/Plan Maint. & C071/Plan Inq.) Plan Maintenance allows you to attach multiple SDBA investments to a plan. The settings can also be viewed in Plan Inquiry. Multiple investments in a plan are required to be identified uniquely and a new plan level setting determines the number of SDBAs that can be created for a participant. A plan with multiple investments may permit fewer SDBA accounts. Following are steps for setting up multiple SDBAss with plans that permit them: 1. From the Identification window in Plan Maintenance, select a plan. 2. From the Other Plan Features window, open the Other Plan Features Cont. tab and complete the following Multiple SDBA Settings: October 2008 Schwab Retirement Technologies Page 17 of 65

18 3. Enter the maximum Number of Internal SDBA Allowed: Default=1 if there is a PCRA fund currently attached to the plan. Default=0 if no Schwab PCRA is currently attached to the plan. Valid range=0 to the maximum number of investments allowed in the plan. To add External SDBAs (non-schwab) to a plan, the PCRA Trading Link setting must be set to 0:Schwab Trust link. Then enter the maximum Number of External SDBA allowed. Default=0. Use this setting to allow non-schwab SDBAs. To exclude external SDBA accounts from a plan set the PCRA Trading Link to 1:Broker/Dealer, Once set to this setting, the Number of External SDBA Allowed field will be disabled. 4. Open the General Source Data window and update the Number of Investments to the appropriate value to allow the addition of the investments to the source. 5. Open the General Investment Data window and select the Investment Positions created for the source. Select a new SDBA investment from the Investment ID box. 6. Complete any other required modifications for this investment and then click Save to update the plan record. Activity Tracking is updated with the new settings. October 2008 Schwab Retirement Technologies Page 18 of 65

19 Participant Multiple SDBA Setup (C004/Participant Maint. & C071/Participant Inq.) The following steps allow the Recordkeeper to manually set up participant account information related to multiple SDBA: Note: Settings can be viewed in C071/Participant Inquiry but cannot be modified. 1. From the Access window in Participant Maintenance, select a plan and participant. 2. Open the SDBA window. The grid displays SDBA data for all Investment IDs with accounts attached to the plan. Note that Investment ID and External y/n? columns are for viewing only and cannot be modified in Participant Maintenance. External y/n? settings display YES for Non-Schwab investments and NO for Schwab investments. These settings match the settings in Investment Maintenance. 3. Click Add for a new participant or click Edit to modify fields for an existing one (or double-click a field for editing). Note: If you attempt to add an SDBA which would exceed the plan s limits for the Maximum number of Internal and External SDBAs set in Plan Maintenance, an error message appears: October 2008 Schwab Retirement Technologies Page 19 of 65

20 Complete the required fields based on the following field descriptions: Internal Account # (8 alphanumeric characters) This field replaces the PCRA Schwab B/D Account field from releases prior to 3.0. The number represents the Schwab SDBA Account number for trading through Charles Schwab Broker/Dealer or a pseudo account number for non-schwab accounts. System Settings in C282/RK SQL System Maintenance contains the following TDI setting: Schwab PCRA=XXX, where XXX is the number assigned by Schwab for TradeLink. The system pulls the account number from the PCRA file when the following conditions are true: The System Setting is set for the assigned number for TradeLink. Schwab Broker/Dealer link is specified for the PCRA Trading Link in Plan Maintenance. If you change the Internal Account #, Recordkeeping sets the Open Date to the current date. If you clear the number, the Open Date is cleared. If the account is Internal, the External Account # field will be blank. If you change the Internal Account #, Recordkeeping sets the Open Date to the current date. If you clear the number, Recordkeeping clears the Open Date. Description: This optional field (maximum of 30 characters) defaults to the investment description for the corresponding Investment ID. The Internal Account # uses a unique 8- character number.. If a number is entered that matches any existing number on the system, a warning appears: Schwab Account # already exists on the system in Plan (ID) for (participant SSN). Open Date: This represents the date that the account was entered into Participant Maintenance. This field is required if you enter a Schwab Account #. Note: This field replaced the PCRA Schwab Origination Date field in releases prior to 3.0. Schwab Recordkeeping enters the process date in the Open Date field when an Investment ID is entered. If the Internal Account # is changed, Recordkeeping updates this field. External Account # represents the actual account numbers in use for external SDBAs. If External Acct? is set to YES, the External Account # field is required. If the setting is NO, the field is optional since Schwab accounts do not have an External Account #. October 2008 Schwab Retirement Technologies Page 20 of 65

21 External displayed at the bottom of the dialog displays the Schwab SDBA setting from Investment Maintenance. Set to Yes if the account is not a Schwab investment and No if the account is a Schwab investment. Note: To ensure that the integrity of unique account numbering is maintained within Recordkeeping, external SDBAs are assigned a second account number that is only used internally within Schwab recordkeeping systems. This number will not be seen on any participant reports or communications between the participant and the provider. The participant continues to use only the account number established by the provider. The Recordkeeper can view both numbers on the system. Provider ID: This field is populated from the Provider List in C282/RK SQL System Maintenance. This represents the provider where the account is held. The field is optional, but if left blank, a warning appears: It is recommended to select a Provider. If Provider Listing is blank, maintain via System Maintenance. Click OK to save the changes and update Activity Tracking or click Cancel to avoid saving the changes. If you modify fields and attempt to cancel without saving the changes, a warning appears. The Investment ID and External setting appear at the bottom of the dialog. 4. Repeat above procedures for each account. Activity Tracking is updated for all saved data. October 2008 Schwab Retirement Technologies Page 21 of 65

22 Deleting SDBAs (C999/Purge Utilities) The purge process is not changed with the multiple SDBA enhancement but now works with multiple SDBAs at investment, plan, and participant levels. To purge an SDBA do the following: 1. Enter the selection criteria on the Search Criteria window in Purge Utilities. 2. Set the focus on the account you want to purge. 3. Click Purge. The system asks for confirmation and then verifies that the Investment ID corresponds with the account investment elections. If no errors occur the system purges the selected account information. If errors do occur, they are reported to the screen. Setting up SDBAs through ADT Synoptic (C150/ADT) To automatically set up SDBA account(s) for the participant in ADT (ADTSYN.DLL), after SDBA settings and a Provider List are set up, do the following: 1. From the ADT Synoptic window in ADT, select runtime options. 2. The system displays SDBA data elements in Synoptic mode within the All and Synoptic fields: - Schwab Acct # - Description - Open Date - Investment ID (Required in ADT file) - Non-Schwab Acct # - Provider ID 3. Data in the batch file for an SDBA replaces the information in the database based on the Investment ID in the batch file. If the Investment ID in the batch file has a Schwab Account # mapped to it for the participant, the existing SDBA account is updated. If the Investment ID in the batch file does not have a Schwab Account # mapped to it in the database for the participant, a new SDBA account will be created. If the same element is used multiple times in a template, the last value read in for that element is used. 4. For new accounts, refer to the steps for Adding/Modifying Participant SDBAs in C004/Participant Maintenance. 5. The process in ADT can be run in either Edit mode or Update mode. October 2008 Schwab Retirement Technologies Page 22 of 65

23 Processing Multiple SDBAs Lump Sum and Force Out Requests (C090/Lump Sum Dist., C150/ADTFIN, and C552/OPI Update) When the system processes lump sum requests the participant s vested balance calculation automatically picks up any SDBA investments that were added to the plan. Processing a lump sum request manually in C090/Lump Sum Distributions for a participant without a liquid SDBA portion (basic flow): 1. From the Post Payments window in C090/Lump Sum Distributions, select the appropriate participant. 2. The system calculates the participant total Vested Balance and displays it on the Post Payments window. 3. At the source level, the participant s vested balance (investment level) is displayed on the Vesting Data window. 4. The system determines the following: SDBA Total = The balance in the SDBA (across all sources). SDBA Non-Liquid Portion = Investments amount SDBA Liquidity Portion (new read-only column) = Money Market (Sweep) amount. If there is a negative pending amount for the account (purchases larger than sales) the negative pending amount is added to the money market to determine the liquidity portion. This lessens the chance of overdrawing the SDBA. A positive pending amount has no effect on the liquidity portion. October 2008 Schwab Retirement Technologies Page 23 of 65

24 If the participant s account is not totally liquid, a warning appears for lump sum distributions and the distribution processing cannot continue: If you then click View SDBA Account Details, a pop up window appears: After reviewing the account information, the only option remaining in the first window is to Cancel the distribution request. Note: To override the system and process the distribution even though the account is not entirely liquid go to C178/PCRA Balance File Maintenance for the current day and change the value in the Money Market to reflect the entire SDBA amount and zero out the Investments and Pending Activity fields. 5. Select Submit and Process. The system processes the lump sum request and distributes the participant s vested balance at the source/investment level. Batches recognize each unique investment identifier within an SDBA. 6. The system generates the reports. You can verify that multiple SDBA investment balance information is reported by selecting Sample Distribution Report or Sample Distribution Statements. October 2008 Schwab Retirement Technologies Page 24 of 65

25 Processing a Force-Out request in C090/Lump Sum Distributions for SDBA: 1. Open C090/Lump Sum Distributions and from the Process Setup window, select Submit Force Out Distributions. 2. Select the Plan IDs from the dialog. The system determines which participants in the selected plans meet the requirements for a Force Out distribution for the SDBA for the plan. 3. The system checks for non-liquid portions in the SDBAs. For each account, the following are determined: SDBA Total = The vested balance in the SDBA (across all sources). SDBA Non-Liquid Portion = Investments amount SDBA Liquidity Portion = Money Market (Sweep) amount. If there is a negative pending amount for the account (purchases larger than sales) the negative pending amount is added to the money market to determine the liquid portion. This lessens the chance of overdrawing the SDBA. A positive pending amount has no effect on the liquidity portion. 4. Participants with a non-liquid SDBA balance cannot be processed and the following message appears: Participant has a non-liquid portion in the following SDBA(s): Investment: <Investment ID> SDBA: <SDBA number> Liquidity Amt: <liquidity portion> Non-Liquid Amt: <non-liquid portion> An error message is also printed on the report. 5. The system lists participants meeting the criteria for a Force Out in the Edit Submitted grid. Processing a SDBA Force-Out request in C150/ADT Financial (ADTFIN): 1. Open C150/ADT and select a Plan, Batch File, and Template. The system reads the batch file to determine if there is a lump sum request for a participant and if there is a non-liquid portion in any of the participant s SDBA. 2. The system checks for non-liquid portions in the SDBAs. For each account, the following are determined: SDBA Total = The vested balance in the SDBA (across all sources). SDBA Non-Liquid Portion = Investments amount SDBA Liquidity Portion = Money Market (Sweep) amount. If there is a negative pending amount for the account (purchases larger than sales) the negative pending amount is added to the money market to determine the liquid portion. This lessens the chance of overdrawing the SDBA. A positive pending amount has no effect on the liquidity portion. 3. Participant SDBAs with non-liquid portions are not processed, and an error prints to the Exceptions Report: Participant has a non-liquid portion in the following SDBA(s): Investment: <Investment ID> SDBA: <SDBA number> Liquidity Amt: <liquidity portion> Non-Liquid Amt: <non-liquid portion> The system then continues to the next record in the batch file or completes processing. October 2008 Schwab Retirement Technologies Page 25 of 65

26 Processing a Lump Sum Web request for a participant request in C552/OPI Update: 1. Open C552/OPI Update and from the Process Setup window, select the plans you want to process. The system checks the pending participant requests and determines if there is a lump sum request to process. 2. The system checks for non-liquid portions in SDBAs. For each account, the following are determined: SDBA Total = The vested balance in the SDBA (across all sources). SDBA Non-Liquid Portion = Investments amount SDBA Liquidity Portion = Money Market (Sweep) amount. If there is a negative pending amount for the account (purchases larger than sales) the negative pending amount is added to the money market to determine the liquid portion. This lessens the chance of overdrawing the SDBA. A positive pending amount has no effect on the liquidity portion. 3. If a participant SDBA has a non-liquid portion, the system cannot process the distribution and generates an error on the Exceptions Report. It continues to the next pending participant request or completes processing. October 2008 Schwab Retirement Technologies Page 26 of 65

27 Loan Processing Loan Processing Hierarchical Origination Method (C201/Loan Maintenance) To process a loan from an account with an SDBA balance, with the hierarchical origination method do the following: 1. Open the C201/Loan Maintenance application in Recordkeeping and from the Add Loans window, select the Participant requesting the loan. 2. The system determines the Loan Available amount using the vested balance of SDBA investments in the calculation, and not just the liquid portion of the SDBA investments. Loan Available=vested balance x loan available percentage (set at the investment level in Plan Maintenance.) 3. Enter all other appropriate loan request field information and then select Calculate Payment. The system uses the Loan Hierarchy to spread the loan amount across source/investments. The liquid portion is used as the balance for the SDBA investments when spreading the loan across the sources. 4. From the Source/Investment Amount window, you can view the individual investment amounts with each SDBA represented by an investment, and multiple SDBAs are displayed in the grid by source. 5. For each SDBA, the liquid portion is reported in the Maximum Amount Available column. The liquid portion is used as the balance for the SDBA investments. Amount Available = liquid portion of the SDBA x loan maximum percentage (set at the investment level in Plan Maintenance). If you enter an amount higher than the October 2008 Schwab Retirement Technologies Page 27 of 65

28 maximum set, an error message appears: 6. Verify that the loan is spread appropriately across sources/investments. Then select Post and Process. 7. The system processes the loan request representing each SDBA as a unique investment within the plan, and then generates the report. Manual Origination Method (C201/Loan Maintenance) To manually process a loan through Loan Maintenance using the Manual Origination Method, do the following: 1. Follow steps 1-3 above. 2. From the Source/Investment Amount window, enter how the loan should be taken across sources/investments. 3. Follow steps 5-7 above. Loans Processing through (C150/ADT Financial ADTFIN) 1. Open ADT Financial and select a Plan, Batch File, and Template. 2. The system determines whether the loan origination method is set to Hierarchical or Manual. If hierarchical, the Loan Hierarchy is used to spread the loan amount across the sources/investments, using the liquid portion as the balance for the SDBAs. Only the liquid portion of the SDBA is used to determine how much of the loan amount is spread to that investment. If the method is manual, the system uses the batch file information to spread the loan amount across investments. If the amount in the batch file exceeds the maximum set in Plan Maintenance, or does not cover the total loan request, an error message appears: Origination aborted Source_Fund_ origin amount > maximum allowed. or Origination aborted You have not satisfied the total amount of the loan. 3. In Edit mode, appropriate reports are generated. In Update mode, batches are also generated for the loan. 4. System continues to the next record in the Batch File or completes processing. Web Loan Request Processing (C552/OPI Update) Select the appropriate plans from the Process Setup window in the C552/OPI Update application. The system checks pending participant requests for paperless loans from the Web or loan requests in the *.ACT file (Export Activity file) and uses the vested balance of any SDBAs to determine the loan available amount. The system uses the hierarchical loan origination method to spread the loan amount across sources/investments. October 2008 Schwab Retirement Technologies Page 28 of 65

29 Consolidating SDBA Loans (C206/Loan Consolidation) The C206/Loan Consolidation application considers SDBA vested balances and can use either the hierarchical or manual origination method to determine loan calculations. In-Service Withdrawals (C091/In-Service Withdrawal) Note: Rather than calculating the hardship available amount once per participant, the application now calculates liquidity later in the process to include all liquid amounts for each investment tied to Link 20. Hierarchy Specification Method To process a hardship in-service withdrawal from an account with an SDBA balance, using the Hierarchy specification method do the following. 1. Open the C094/Withdrawal Template Maintenance and select the plan and withdrawal template from the Maintain Template window. 2. From the Investment Hierarchy window, review the template and maintain distribution and fee hierarchies if required. All SDBA investments display in the investment grid. Distribution and fee hierarchies can be modified if required. To use the vested amount in the distribution, it must be included in the hierarchy. 3. Save the template. You can print this template from the Print Templates window to verify the investment hierarchy. 4. Open the C091/In-Service Withdrawal application and from the Process Setup window, select the Plan and Template for the hardship withdrawal. October 2008 Schwab Retirement Technologies Page 29 of 65

30 5. From the Post Payments window, select the participant who requested the in-service withdrawal. 6. The system calculates the liquidity amount for the participant s hardship available from all investments that are tied to Link 20 for multiple SDBA investments. The system uses the liquid balance portion of all SDBA investments to determine the amount and then displays this hardship amount on the Source/Investment Data window. 7. Enter the withdrawal amount. Note: Maximum withdrawal cannot be greater than the calculated Hardship Available amount. If the requested withdrawal is larger than the vested balance, an error is reported, Payout amount cannot exceed vested balance <amount> If the requested withdrawal amount is greater than the Maximum Liquidation, the following error is reported: Payout cannot exceed Max LIQ balance <amount>. If the amount entered is acceptable, the system continues to the next step. 8. Recordkeeping displays on the Source/Investment window how the withdrawal spreads across sources/investments according to the template settings. Multiple SDBA investments are reported with the liquid portions used as the balance for SDBA investments listed in the Maximum Dollars column. You cannot enter a withdrawal greater than the Maximum Dollars shown. 9. Click Submit and then click Process. The system completes processing and generates reports for viewing. October 2008 Schwab Retirement Technologies Page 30 of 65

31 In-Service Withdrawals (C150/ADT Financial) When you select a Plan, Batch File, and Template in the ADT application, the system reads the batch file to determine the parameters of the in-service withdrawal request. When the system processes the request, the withdrawal information is read from the file rather than Recordkeeper input. Errors encountered are generated to the report, but not to the screen. If a participant has a non-liquid portion in an SDBA investment, an error is reported: Participant has a non-liquid portion in the following SDBA(s): <investment ID> SDBA: <SDBA number> Liquidity Amt: <liquidity portion.. Non-Liquid Amt: <non-liquid portion>. The system then continues to the next record in the Batch file or completes processing. Processing In-Service Web Withdrawal Requests (C552/VRS/OPI Update) The system reads the pending participant requests to determine whether there are any paperless in-service withdrawals received through the Web. Only non-liquid portions of SDBA investments are included in the processing. If the participant has a non-liquid portion in an SDBA investment, a warning prints to the report. Participant has a non-liquid portion in the following SDBA(s): <investment ID> SDBA: <SDBA number> Liquidity Amt: <liquidity portion.. Non-Liquid Amt: <non-liquid portion>. If there are additional records to process, the system continues until completion. Alternatively, the Recordkeeper can process participant withdrawal requests through the Process Setup window in C552/VRS/OPI Update by selecting the plans to process. The system reads the pending participant requests to determine any withdrawal requests. The system reports the request to the *.ACT file and if one exists generates the following message on the Detail Report, There is a pending withdrawal request in the export activity file. The Recordkeeper views and closes the report. The withdrawal amount is determined in different ways based on the type of withdrawal processed: 1. Hardship Withdrawals use source level settings to determine whether the source is to be included in the available calculation. 2. In-Service Withdrawals use the current balance, hierarchy from the selected template, and the liquidation maximum to determine the available amount. October 2008 Schwab Retirement Technologies Page 31 of 65

32 Transfers and Exchanges with SDBAs C036m/Exchanges and Transfers For transfers only the liquid portion of SDBA investments can be transferred. Realignments cannot include SDBA investments. To request transfer do the following: 1. Open the C036m/Exchanges and Transfers application. From the Process Setup window, select a Plan. 2. From the Process Transfers window, select the Transfer Type ($ to $, $ to %, or % to %). 3. Select the appropriate Participant SSN requesting the transfer. 4. Select a Source Position. The system determines the balance available (liquidity portion of SDBA) for each investment in the source and displays in the Investment ID box. 5. For $ to $ or $ to % transfers, enter the transfer amount in the Amount field. Transfer Amount = Liquidity portion of the SDBA x Transfer sales cap (set up in Plan Maintenance). If a transfer amount requested is higher than the Amount available for transfer the system will prompt an error message and not continue to process the transfer unless a lower amount is requested. For % to $ transfers, the system determines the percentage available for each investment within the source. Even through the sale cap for an SDBA can be 100%, the 100% is applied to the liquid portion of the SDBA investment. October 2008 Schwab Retirement Technologies Page 32 of 65

33 Transferable portion = Liquidity portion x Transfer sales cap (set up in Plan Maintenance). Note: The Investment must allow transfers at the investment level (Plan Maintenance setting). 6. In the Investment grid, enter the total amount (if $ to $) or percentage (if $ to %) or enter the percentage in the Amount field (if % to %). If the percentage is higher than the percentage available for transfer, the system will not continue processing the transfer. Enter a lower percentage to continue. The total percentages in the grid must equal 100%. 7. Select Post and then click Process. The transfer is posted across the selected investments and the system generates appropriate reports. Realignments (C036m/Transfers and Exch., C150/ADT Fin. or ADTFIN) Realignments cannot be done with SDBA investments and do not appear in the realignment grid in C036m/Transfers and Exchanges. In C150/ADT, an error is reported: ADT investment transfers are not allowed on <SDBA> investment. After processing a realignment, you can verify that SDBA balances are not affected by the realignment by checking the detail report. If an SDBA balance exists in an investment, a message is generated: Although Participant <name? has a balance in SDBA investment(s) <Investment IDs>, the balance in the SDBA is not realigned. Transfers through C150/ADT Financial (ADTFIN) To request a transfer through C150/ADT Financial, do the following: Open C150/ADT Financial and select a Plan, Batch File and Template. The system determines the transfer amount available by reading the Batch File, including only the liquidity portion from SDBA investments. Transferable Balance = Liquidity Portion x Sale Cap Web Transfers processed through C552/OPI Update Select the appropriate plans from the Process Setup window in the C552/OPI Update application. The system checks pending participant requests from the Web, using the vested balance of any SDBAs to determine the available amount. Realignments are not allowed on SDBA investments. October 2008 Schwab Retirement Technologies Page 33 of 65

34 Reversing Transactions (C034/Reverse Transactions) The C034/Reverse Transactions application uses the balance records stored in the SDBA Daily Balance records and the records in the transaction table. The system generates reversal reports with the following header changes: SDBA MARKET VALUE ADJUSTMENT REVERSAL TRANSACTIONS - BATCHES CREATED NUMBER OF BATCH ID PROCESS DATE PLAN BATCH TYPE TRANSACTIONS In C034/Reverse Transactions when the system reverses transactions involving SDBA, the following message appears: The system creates a reversal batch of unit certain transactions of the opposite transaction type of the original transaction. For example, if the transaction was originally a sale, the reversal batch will contain a purchase. Transactions are reversed at the prior market value of the original transaction. If there is a difference in market value, a unit certain sale with a cash receipt or disbursement is created. Modifications to C000/Start a New Day Prior to release 3.0, the system did not update the next day s balances on the balance records, such that if system balances were not found for the current day, the system looked back to previous records (defaulting to yesterday s records). In release 3.0, the balances are updated ahead, eliminating the need to look-back. An SDBA record is created for today per account as needed. Another SDBA record per account is created for the following business day. The current day defaults to the balances from the previous business day. Adding SDBAs to a Fee Schedule (C030/Fee Schedule Maintenance) The following are the steps involved in adding SDBA investments to a Plan or Participant fee schedule: 1. Open the C030/Fee Schedule Maintenance application and from the Fee Schedule Setup window, select the Fee Schedule ID, Fee Type, and Basis Fee. 2. From the Market Value window, verify that there are multiple SDBA investments in the Investment ID listing. 3. Add the SDBA investment information as required. Each SDBA can be set up as a separate investment. When the system updates the fee schedule data, a report appears for verification. October 2008 Schwab Retirement Technologies Page 34 of 65

35 C177/Charles Schwab Trust Co. SDBA Cashiering Export The following describes how the Charles Schwab Trust Co. SDBA Cashiering Export creates an export file to send information to CSTC with multiple SDBAs (internal and external), including contributions and transfers. Multiple SDBAs are included in the report: Pre-conditions: Plan is set up with appropriate SDBA settings. The PCRA Trading link in Plan Maintenance is set to 0: Schwab Trust Link and Buy/Sell worksheets are created with pending batches. 1. From the Select Plan Groups window in the application, the Recordkeeper selects the appropriate Plan Groups. 2. From the Export window selects the range of batches. Only batches involving an SDBA in a sale or purchase can be selected for the Plan Groups. 3. Select desired runtime settings for Re-export File and or Print Detail. 4. Click Process. Each participant SDBA is mapped to a unique investment within the plan to determine which account number the cash movement should affect. The system tracks the total purchases and sales for each participant in the plan at an investment/account level. One record is created for each participant s total purchase and another record for each participant s sales. The Export file is created for each participant s SDBA and the system then continues to process the selected Plan Groups and generate reports. Transfers: If the system finds a transfer batch involving SDBAs, since the sale is settled and released before the purchase is initiated, an additional step is required to determine if it is to be included in the export. If the participant is transferring from an SDBA and the sale is not yet released, the sale is included in the export since it is part of the transfer currently in progress. If the transfer is into an SDBA and the sale has been released, the purchase is included in the Export file. If the sale has not been released, the purchase is not included in the file. Report Headers: SCHWAB SDBA MARKET VALUE IMPORT ERROR REPORT, FILE: <Import file name> EDIT MODE ONLY: ACQUISITION TAX CODE: DISTRIBUTION TAX CODE: INTERNAL SDBA ACCOUNT SDBA PLAN ACCOUNT # DESCRIPTION PARTICIPANT MARKET VALUE COMMENT Export Map Report Headers: CHARLES SCHWAB TRUST COMPANY SCHWAB SDBA CASHIERING EXPORT REPORT for RPA: <file name> SCHWAB SDBA CASHIERING EXPORT REPORT: SEND AGAIN: PLAN PARTICIPANT INTERNAL SDBA B/D ACCOUNT CREDIT AMOUNT DEBIT AMOUNT BATCH ID ORDER ID ACTIVITY ORIGIN CREDIT BATCH AMOUNT DEBIT BATCH AMOUNT COMMENTS October 2008 Schwab Retirement Technologies Page 35 of 65

36 C187/Fidelity SDBA Money Movement The Fidelity SDBA Money Movement export creates a file to send SDBA information to the Broker/Dealer. The application creates the export file with sales or purchases of multiple SDBAs, including contributions and transfers. Only batches involving an SDBA investment in a sale or purchase can be selected from the Export window. Closing a SDBA (C999/Purge Utilities) The SDBA window is used to close a participant SDBA. Although the account is not actually removed from the system, the Open Date is deleted. The Open Date determines if an account is closed, which controls whether that account appears in C178/SDBA Balance Maintenance. As with purging an account, the system checks for account balances in the SDBA-related tables and the regular fund balance tables before allowing the account to close. To re-open the account, open Participant Maintenance/SDBA window, edit the account information, and re-enter a new Open Date. October 2008 Schwab Retirement Technologies Page 36 of 65

37 In the Purge Utility, Participant Maintenance, and Participant Inquiry, the account still appears, but the font and background appear in a different color and the Open Date field reads, closed. October 2008 Schwab Retirement Technologies Page 37 of 65

38 Reporting Participant SDBAs Reporting Multiple SDBAs (CP07/Plan Digest) To report multiple SDBA settings in the CP07/Plan Digest application, do the following: 1. Open the Plan Digest application and select a Plan ID from the Report Detail window. 2. Enter a date and message your want to appear on the report 3. From the Plan Digest tree/select Report Options select Options. 4. Click Print. 5. The system prints the following fields in the Options section of the report: Number of Internal SDBA Allowed Number of External SDBA Allowed 6. The system prints all SDBA investments in the Investments section for Source. October 2008 Schwab Retirement Technologies Page 38 of 65

39 Reporting SDBAs to the Participant Master Report (CP23/Utility Reporting) To print SDBA information to the Participant Master Report select Miscellaneous Data option from the Report Options window under Print Options.. The following data prints to the report when this option is selected: - Investment ID - External SDBA - Internal Account # - Description - Open Date - External Account # - Provider ID October 2008 Schwab Retirement Technologies Page 39 of 65

40 C158/Participant Data Extract The C158/Participant Data Extract extracts SDBA data and plan balance information at the plan or participant level. Refresh Lite (C551) A new C551/Refresh Lite module replaces the Refresh module in Recordkeeping. SDBA information is updated during Refresh allowing participants to view SDBA available amounts for SDBA information on the Web. The available amounts stored for each participant are as follows: Loan available (as calculated in Loan Maintenance) Hardship available (as calculated in In-Service Withdrawal Withdrawal available (as calculated in In-Service Withdrawal or Lump Sum based on the status code of the participant: Terminated=Distribution Amount. Nonterminated=Hardship Amount available. Note: Due to the V-File replacement enhancements with this release, Real-Time is no longer available and C557/Customer Service is no longer supported on the Recordkeeping system. October 2008 Schwab Retirement Technologies Page 40 of 65

41 Participant Statements with SDBAs (CP20/Statement Generator) To generate SDBA data on Participant Statements do the following: 1. Open the CP20/Statement Generator application. 2. Select the plan(s) and appropriate runtime settings. 3. Click Process. If the participant has SDBAs represented by an investment, the Description of the SDBA prints in place of the Investment name on the statement. The SDBA description is used under the Source/Investment listing. SDBA SQL Extracts (CSQL) To generate SDBA data in CSQL Extracts do the following: 1. Open the CSQL application. 2. Select the plan(s) and appropriate runtime settings. 3. Click Process. The system extracts the following information: Number of Internal SDBA Allowed Number of External SDBA Allowed Investment ID External SDBA Internal Account # Description Open Date External Account # Provider ID (description) October 2008 Schwab Retirement Technologies Page 41 of 65

42 CP50XI/SDBA Provider Reporting New reporting options in CPXI/SQL Report Generator, create SDBA provider reports for by Plan, Investments, or by Provider. To generate SDBA reports, open the CP50XI application and do the following: 1. From the Choose Report window, select an SDBA Provider report type from the Choose Report field, the desired output (Screen, Printer or File) and then click the Submit button. Click Report Configuration INI to open a text editor for modifying as required. The following reports are available: SDBA Provider Report by Plan You can select all plans (default selection) or multiple plans from the Select Plan Group window. Only Plan Groups with an attached SDBA investment display in the field. SDBA Provider Report by Investment Field allows selection of multiple investments. All Investments are selected by default. Available investments are attached to Link 20. SDBA Provider Report by Provider You can select one or All Providers (default) from the Select Providers window. Under Plan ID, you can select one or All Plans in the Current Directory (default selection). Only plans with an attached SDBA investment are available in the field. October 2008 Schwab Retirement Technologies Page 42 of 65

43 2. Open the Parameters window. The Print Detail? check box is selected by default, and can be cleared. This determines if the participant level information is printed to the report. The As of Date defaults to today s date and can be changed. 3. Click Process to complete the report. October 2008 Schwab Retirement Technologies Page 43 of 65

44 Report 1 By Provider w/ Print Detail (All providers and all plans) Provider Report Provider ID: All Providers Plan Selection: All Plans in Current Directory Print Detail: Yes Provider ID Prov1 - Participant Detail Plan ID 001: Plan1 Name Number of Internal SDBA Allowed: 1 Number of External SDBA Allowed: 1 Participant Investment Internal Total Acct Money Market Investment Pending External Name ID Acct Num Value Amount Amount Amount Acct Num Partname1 SDBA $ $ $ $ Partname1 EDBA $ $ $ $ Partname200 EDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: xx Number of Internal Accts in Plan: xx Plan ID 002: Plan2 Name Number of Internal SDBA Allowed: 2 Number of External SDBA Allowed: 1 Participant Investment Internal Total Acct Money Market Investment Pending External Name ID Acct Num Value Amount Amount Amount Acct Num Partname100 SDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Partname101 SDBA 2 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Partname200 SDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Partname201 EDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx.. Partname700 SDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Provider Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts for Provider: Number of Internal Accts for Provider: Plan ID 003: Plan3 Name Number of Internal SDBA Allowed: 0 Number of External SDBA Allowed: 0 No information to report Provider ID Prov2 - Participant Detail {report information for second provider} October 2008 Schwab Retirement Technologies Page 44 of 65

45 Report 2 By Provider w/o Print Detail (All providers and all plans) Provider Report Provider ID: All Providers Plan Selection: All Plans in current directory Print Detail: No Provider ID Prov1 Totals Plan ID 001: Plan1 Name Number of Internal SDBA Allowed: 1 Number of External SDBA Allowed: 1 Total Acct Money Market Investment Pending Value Amount Amount Amount Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Plan ID 002: Plan2 Name Number of Internal SDBA Allowed: 2 Number of External SDBA Allowed: 1 Total Acct Money Market Investment Pending Value Amount Amount Amount Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Provider Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts for Provider: Number of Internal Accts for Provider: Provider ID Prov2 {report information for second provider} October 2008 Schwab Retirement Technologies Page 45 of 65

46 Report 3 By Provider w/ Print Detail (one provider and one plan) Provider Report Provider ID: Prov1 Plan Selection: Plan ID 001 Plan Name Print Detail: Yes Provider ID Prov1 - Participant Detail Plan ID 001: Plan Name Number of Internal SDBA Allowed: 1 Number of External SDBA Allowed: 1 Participant Investment Internal Total Acct Money Market Investment Pending External Name ID Acct Num Value Amount Amount Amount Acct Num Partname1 SDBA $ $ $ $ Partname1 EDBA $ $ $ $ Partname200 EDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Provider Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts for Provider: Number of Internal Accts for Provider: October 2008 Schwab Retirement Technologies Page 46 of 65

47 Report 4 By Plan w/ Print Detail Plan Provider Report Plan Selection: (Plan ID Plan Name checklist) Print Detail: Yes Plan ID 001: Plan1 Name Number of Internal SDBA Allowed: 1 Number of External SDBA Allowed: 1 Participant Investment Internal Total Acct Money Market Investment Pending External Provider Name ID Acct Num Value Amount Amount Amount Acct Num ID Partname1 SDBA $ $ $ $ Charles Schwab Partname1 EDBA $ $ $ $ Prov1.. Partname200 EDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx Prov2 Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Plan ID 002: Plan2 Name Number of Internal SDBA Allowed: 2 Number of External SDBA Allowed: 1 Participant Investment Internal Total Acct Money Market Investment Pending External Provider Name ID Acct Num Value Amount Amount Amount Acct Num ID Partname100 SDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Prov1 Partname101 SDBA 2 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Prov2 Partname200 SDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxx Partname201 EDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx xxxxxx.. Partname700 SDBA 1 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: October 2008 Schwab Retirement Technologies Page 47 of 65

48 Report 5 By Plan w/o Detail Plan Provider Report Plan Selection: (Plan ID Plan Name checklist) Print Detail: No Plan ID 001: Plan1 Name Number of Internal SDBA Allowed: 1 Number of External SDBA Allowed: 1 Total Acct Money Market Investment Pending Value Amount Amount Amount Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Plan ID 002: Plan2 Name Number of Internal SDBA Allowed: 2 Number of External SDBA Allowed: 1 Total Acct Money Market Investment Pending Value Amount Amount Amount Plan Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Number of External Accts in Plan: Number of Internal Accts in Plan: Report 6 By SDBA Investment ID w/ Detail SDBA Investment Report SDBA Investment Selection: (Investment checklist) Print Detail: Yes Investment ID: SDBA 1 Plan Participant Internal Total Acct Money Market Investment Pending External Provider ID Acct Num Value Amount Amount Amount Acct Num ID PLAN Partname $ $ $ $ Charles Schwab PLAN Partname $ $ $ $ Prov1.. PLAN Partname200 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx Prov2 Investment Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx Investment ID: SDBA 2 Plan Participant Internal Total Acct Money Market Investment Pending External Provider ID Acct Num Value Amount Amount Amount Acct Num ID PLAN Partname200 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx xxxx PLAN Partname300 xxxxxxxx $ x.xx $ x.xx $ x.xx $ x.xx xxxxxxxx xxxx Investment Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx October 2008 Schwab Retirement Technologies Page 48 of 65

49 Report 7 By SDBA Investment ID w/o Detail SDBA Investment Report SDBA Investment Selection: (Investment checklist) Print Detail: No SDBA Investment ID: SDBA 1 Total Acct Money Market Investment Pending Value Amount Amount Amount Investment Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx SDBA Investment ID: SDBA 2 Total Acct Money Market Investment Pending Value Amount Amount Amount Investment Totals $xxxxxx.xx $xxxxxxx.xx $xxxxx.xx $xxxx.xx October 2008 Schwab Retirement Technologies Page 49 of 65

50 Schwab RT Web Options for SDBAs Configuring Schwab RT Web (Schwab RT Admin) This section describes the SDBA configuration options in the Schwab RT Admin console. Enable Display of Plan Rules To display SDBA account numbers on the Plan Summary page: 1. Log on to Schwab RT Admin. 2. From the Plan Options menu, select View/Update Options. 3. Select one or more plans. Click Add, and then click Continue. 4. Under Plan Options, on the Environment Options line, click Edit. 5. Under Web Options, under Plan Options, select the following options: Display Number of Internal Accounts Allowed Display Number of External Accounts Allowed. Both options are not selected by default. 6. Click Update. The plan-level options appear below: October 2008 Schwab Retirement Technologies Page 50 of 65

51 Participant Web Options Plan participants can log on to Schwab RT Web to view their SDBA account information, modify the account description, and access their accounts through links to the provider s Web site. These participant options are described in more detail below. Access/Modify SDBA Account Information To access and modify account information for both internal and external SDBAs. 1. On the participant Web menu, select Participant Summary. 2. On the Participant Summary page, the participant can do the following: View SDBA account information. Click on account link to access the provider s Web site. The Web site is defined in the Provider Website Link field in SQL System Maintenance (C282). Modify the account description. If no account description exists in Recordkeeping, the plan fund name is shown. October 2008 Schwab Retirement Technologies Page 51 of 65

52 The SDBA account information on the Participant Summary appears below: To modify the SDBA description, click on the icon, make the change, and click Update, as shown below. October 2008 Schwab Retirement Technologies Page 52 of 65

53 Viewing Plan Rules for SDBA Accounts On the Plan Summary page, participants can view the number of internal and external SDBA accounts that are permitted for the plan. Note: SDBA account transactions are restricted as follows: Realignment of SDBA accounts and portfolios is not permitted. Only the liquid portion of an SDBA account can be transferred. Opening a PCRA Account Pre-existing functionality in Schwab RT Web allows participants to open a Schwab PCRA account via a direct link from Schwab RT Web. For details on configuring the Schwab PCRA option, see the Appendix. SchARP Fee Processing Multiple SDBA functionality is supported by the following modifications to SchARP fee processing templates: On the second page of the fee template, the Charge By option (shown below) now allows you to include internal SDBAs, external SDBAs or both in fee processing On the final page of the fee template, the Investments or IPMs fields allow you to include or exclude SDBA investments when calculating the fee basis. Notes: As a pre-condition for SchARP fee processing, SDBA investments must be set up in Investment Maintenance and connected to link 20: Charles Schwab. For detailed information on SchARP fee processing, refer to SchARP Fee Processing User Guide. October 2008 Schwab Retirement Technologies Page 53 of 65

54 Appendix: Schwab PCRA Link (EAO) This section describes existing Schwab RT Web functionality for the Electronic Account Opening (EAO) process for the Schwab Personal Choice Retirement Account (PCRA). EAO is designed to eliminate the manual, paper-based account opening process, saving time and resources for both you and your clients. Schwab RT Web provides participants with a direct link from Schwab RT Web to a secured Web site where they can open a new Schwab Personal Choice Retirement Account (PCRA) or access an existing PCRA account. The site also provides online access to investment and retirement planning resources. The Schwab Personal Choice Retirement Account (PCRA) is a self-directed brokerage account that appears as an additional investment choice in your retirement plan. PCRA accounts are ideal for participants who are looking for more investment access, choice and flexibility in their retirement plan. PCRA gives participants access to a wide array of investment choices beyond the core investment options in their retirement plan as well as the freedom to self-manage their retirement savings. PCRA also offers flexible ways to place a trade order. With PCRA, you may place trade orders whenever it is convenient through the Web, touch-tone and voice recognition services and the Dedicated PCRA Call Center. For more information on PCRA, visit October 2008 Schwab Retirement Technologies Page 54 of 65

55 Administration Settings To implement access to the PCRA site from Schwab RT Web, the system administrator must complete the following procedures. Request PCRA Link Activation Simplified since the original launch of EAO, the set up process begins with a call to a Schwab RT client service representative. Once the request has been made, EAO activation will take place within five business days. We will then provide you with the appropriate private key and TPA ID which can be easily added to your system-level administration settings. Secondary logins and PINs are no longer required, and integration on to your site is seamless for your clients. Configuring the PCRA Link at the System Level PCRA settings are identical to those used for Schwab 401K Tools. To define PCRA settings for all plans in the system, do the following: 1. From Web Options menu, select Service Provider Options. 2. On the line Schwab 401(k) Tools/PCRA, click Manage. 3. Define the settings shown below. October 2008 Schwab Retirement Technologies Page 55 of 65

56 Field Definitions The options on the Schwab 401(k) Tools/PCRA page are defined below: October 2008 Schwab Retirement Technologies Page 56 of 65

57 Enabling PCRA Link at the Plan Level To enable the PCRA link for a specific plan, do the following: 1. From the Plan Options menu, select View/Update Options. 2. Select one or more plans. Click Add, and then click Continue. 3. On the Advice & Planning Options line, click Edit. 4. Under Advice & Planning Options, select Enable Schwab PCRA Interface to display the Schwab PCRA option on the Web menu Note: If you want to remove the Schwab PCRA option from the menu and suppress the PCRA link, disable this option. 5. Check the appropriate planning tools and other options you want to appear on the PCRA site. 6. Click Update. Customizing Content for PCRA Site Using Content Manger, you can insert the name of the TPA and other information that appears on the PCRA disclosure notice. To define PCRA contents: 1. From the Web Options menu, select Content Manager. 1. In Content Manager, select the appropriate language, user role, Web page (Schwab PCRA), content template, and click Modify Content. 2. Make the necessary changes to the content fields on the Schwab PCRA page. October 2008 Schwab Retirement Technologies Page 57 of 65

58 Adding the PCRA Menu Option To enable participants to access the PCRA site, you must add a predefined option to the menu. To add the new option to the menu, do the following: 1. In Schwab RT Admin, open Menu Manager and load the appropriate menu. 2. In the Add New Menu Element field, select the desired menu location for the new option. 3. From the Use Predefined Element field, scroll down to the Participant Links and select Schwab PCRA. 4. Select the appropriate Link Target for the new element. 5. Click Add. The new element is added to the menu fields displayed in the lower portion of the Menu Editor page. 6. Click Update. The system saves the change to the menu. Participant Access to the PCRA Site When the participant clicks the PCRA menu option, a disclosure notice displays. The participant must read and acknowledge the terms and conditions of PCRA privacy policy and online security stated in the notice. If the participant accepts the terms of the notice, the PCRA site appears. PCRA Web site pages appear on the following pages. Note: The Schwab PCRA site does not require logins or logouts. Schwab RT Web provides the necessary user authentication. It is recommended that the expiration time limit be increased so that the session does not expire when a participant leaves Schwab RT Web to navigate through the PCRA site. Many sessions are set to expire after 15 minutes, which may result in the participant s session expiring before returning to the Schwab RT Web. October 2008 Schwab Retirement Technologies Page 58 of 65

59 PCRA Welcome Page October 2008 Schwab Retirement Technologies Page 59 of 65

60 PCRA Account Application October 2008 Schwab Retirement Technologies Page 60 of 65

61 PCRA Account Application (page2) October 2008 Schwab Retirement Technologies Page 61 of 65

62 PCRA Account Application (page 3) October 2008 Schwab Retirement Technologies Page 62 of 65

63 PCRA Account Application (page 4) October 2008 Schwab Retirement Technologies Page 63 of 65

64 PCRA Account Application (Verification) October 2008 Schwab Retirement Technologies Page 64 of 65

65 PCRA Account Application (Terms) October 2008 Schwab Retirement Technologies Page 65 of 65