Product Feature Update (December, 2013)

Transcription

1 SCHWAB RT RELEASE 6.0 Product Feature Update (December, 2013) This document provides details on the latest product feature enhancements for all Schwab RT systems, beginning with the initial 6.0 release in February, Each subsequent release will be added at the front of the document, providing a cumulative record of all 6.0 releases. For a listing of previous 6.0 releases, refer to the table of contents. The latest revision of this document is available for download from the What s New menu in the Resource Center at schwabrt.com. Date Release Topics 12/12/13 New Redemption Fee Warning for Loans and Auto Rebalance SchARP Loan Enhancements (Phase 3) New Calculation for Dollar/Unit Residual Values Excel Export Option Added to SchARP Loan Management Dashboard New Plan Search Feature Many-to-Many Transfers (General Release) Project currently in pilot testing. For the status of open issues, refer to the Open Issues Report on the Client Services page in the Resource Center.

2 Schwab RT Release 6.0 Product Feature Update Last Update: December 12, 2013 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 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 4529 Sharon Road, Charlotte, NC 28211, USA. Web site: schwabrt.com Schwab Retirement Technologies, Inc. All rights reserved.

3 Contents Contents December, 2013 Enhancements... 5 New Redemption Fee Warning for Loans and Auto Rebalance... 5 Loan Enhancements (Phase 3)... 7 New Calculation for Dollar/Unit Residual Values Excel Export Option Added to SchARP Loan Management Dashboard New Plan Search Feature Many-to-Many Transfers (General Release Notice) September, 2013 Enhancements Payroll Workflow Settings Added to Plan Import Enforcing IRS Limits During Payroll Redemption Fee Added to Loan and Transfer Confirmation August, 2013 Enhancements Loan Administration Enhancements: Payment Methods Many-to-Many Transfers Statement Generator Enhancements Enhanced Ad-Hoc Reports for Sponsors/Advisors Fund Financial Components Added to Plan Import Klein Decisions IPM Settings IPM Allocation Enhancement June, 2013 Enhancements Payroll Notice of Deposit (NOD) by Plan Division SchARP Payroll History Enhancements New Plan Sponsor Loan Notification Option Enhanced Employee Census Report (Phase 2) Revised Page Specs for Broadridge Print/Mail Services Option to Exclude Expunged Participants from Data Extract Default Status Code Settings for Earnings Allocation Revenue Sharing Allocation Based on Current Participant Status Participant Maintenance Usability Enhancements RK SQL Report Generator Usability Enhancements Statement Generator Usability Improvements Making Documentation Easier to Find April, 2013 Enhancements Ad-hoc Request and Publish Custom Reports for Sponsors/Advisors DESS Participant Exclusion Option Pre-Tax Withholding Option for Rollovers Smart Status Codes Ability to Generate Separate Participant Data Extracts Per Plan Enhanced ADT Synoptic Replace Option Loan Administration Enhancements (with Configuration Checklist) Klein Decisions K 4 Plan Goals Schwab Retirement Technologies

4 Contents February, 2013 Enhancements Plan-Level Passcode for Self-Enrollment Inclusion in Hardship Calculation Based on Source Type Integration with Klein Decisions K 4 Plan Goals (ASP Only) Enhanced Employee Census Report for Sponsors and Advisors Retirement of Schwab 401(k) Tools Loan Administration Enhancements Appendix A: Loan Payment Changes Appendix B: SchARP Online Loans FAQ Schwab Retirement Technologies

5 December, 2013 Enhancements This update to Schwab RT Release 6.0 provides the following enhancements: New Redemption Fee Warning for Loans and Auto Rebalance Summary This release includes an enhancement to redemption fee messaging when participants request a Loan or use the Auto Rebalance feature on the participant website. This applies to plans using investments with redemption fees and the warning displayed to participants on the Web. Your participants and plan sponsors will experience this enhancement immediately upon upgrading to the release. Current Behavior A generic warning ( You may incur a redemption fee ) displays if there is one investment in the plan that assesses a redemption fee regardless of whether the participant is selling out of a fund that charges a redemption fee. New Behavior (with Enhanced Investment) If the website uses the Enhanced Investment Performance page, the generic warning is replaced with a message that provides a link to the Enhanced Investment Performance page, allowing participants the opportunity to review investment information, as demonstrated by the loan request example below. Note: The second message shown above informs participants that the Loan window will close if they proceed to the Enhanced Investment Performance page, requiring them to go back and redo the loan request if they still want the loan after reviewing the redemption fee information. February - December 2013 Schwab Retirement Technologies Page 5 of 126

6 The warning message content cannot be modified at this time it is be hard-coded for all clients. Note: We are planning on making future improvements that will allow you to modify the content/verbiage and only display the redemption fee warning if it applies. We will let you know when we have a target date for making this change. Requirements: In order to use the enhancement described above, you must: Use the Enhanced Investment Performance page on the website. (This page also allows you to enable other fund information like links to prospectuses and fund fact sheets.) Display the Fee column where the redemption fee details are displayed. Redemption fee settings are referenced from Schwab RT Recordkeeping modules Redemption Fee Settings and Excessive Trading Policy. New Behavior (without Enhanced Investment) If the participant website does not use the Enhanced Investment Performance page, the following alternative message displays: "Some mutual funds charge short term redemption fees for excessive trading. Please refer to the fund prospectus for details. Click OK or Yes to continue. If you do not wish to proceed with your request, click Cancel or No." The message content cannot be modified at this time it is hard-coded for all clients. February - December 2013 Schwab Retirement Technologies Page 6 of 126

7 Loan Enhancements (Phase 3) Summary This phase of the Loan Administration project provides the following enhancements: Interest from Origination Pays interest from date of loan origination in the first payment(s) instead of spread across payments. Reamortization Ability to recalculate existing loan payments on different terms, without deleting payment history. For example, if a payroll cycle changed from monthly to biweekly, the loan would be reamortized for the new cycle. Deviant Payments Provides efficiencies for handling loan payments that do not match the amount on the amortization schedule. Loan Maintenance Payment Detail Enhancement Redesigned window for enhanced usability and payment information. Online Loan Application Substitute Presents a default summary of loan request details for plans that do no have loan applications set to display on the participant web. LOANPAY Table Changes If you have custom Crystal Reports or an ancillary application that uses loan payment information (LOANPAY table), please review important information in the Appendix A. Interest from Origination Current Behavior Currently, for loans with interest set to begin on the date of origination, interest from origination is spread across payments. New Behavior With the new enhancement, interest from the date of origination is paid with the first payment(s). First payment(s) will show less principal, more interest paid until interest from origination is paid. Once interest from origination is paid, principal and interest are paid. The amount of total interest paid is still the same. This new behavior will resolve residual payment issues when interest from origination is spread across payments. Note: The system no longer calculates interest on interest on the first payment. Impact The new method of repaying interest from origination will impact the following system components: Existing loans Existing loans are impacted if established with interest from the date of origination. The remaining portion of interest from origination is taken from the next payment. New loans New loans established with interest from the date of origination will follow the new process, affecting: - Establish Loans/C201 - Loan Consolidation/C206 - Automated Data Translation/C150 - Participant Web Reamortized loans Any loans that are reamortized where the loan was established to pay interest from the date of origination will pay the remaining interest from origination on the next payment. February - December 2013 Schwab Retirement Technologies Page 7 of 126

8 Notes: Loan Maintenance/C203 displays the breakdown between interest and interest from origination. Once the first loan payment has been made, the following fields In Loan Maintenance can no longer be modified: Interest from Origination - Principal Paid Interest from Origination - Interest Paid. Reamortization Current Behavior Currently, when a loan is reamortized, the historical payments are deleted from the recordkeeping system. New Behavior With the new enhancement, when a loan is reamortized: Payment history is retained in the system and displayed on the Amortization Schedule. Reamortization starts at Next Payment Date. Amortization schedule will report existing payment history AND reamortize future payments. If an existing loan with interest from origination is reamortized, the reamortization process pays interest from origination first, following the new behavior for loans with interest from origination. Impact The reamortization enhancements will impact the following system components: A conditional Next Payment Date field is added to Loan Maintenance. - If no payments have been made, First Payment Date is still available. - If payment has been made, Next Payment Date is available. The reamortization process cannot extend the duration of the loan to more than the loan term. For clients who need the current behavior of deleting payment history, do the following: 1. For each loan payment, turn off the Paid indicator on the Edit Detail window in Loan Maintenance/C Reamortize the loan using the Modify Loans window in Loan Maintenance/C203. February - December 2013 Schwab Retirement Technologies Page 8 of 126

9 Deviant Payments Current Behavior When a loan repayment is deviant (i.e., the amount of the payment did not match the amount on the amortization schedule), the current system: Requires that the Loan ID be included on the payroll file. Updates payment record but does not reduce principal. Usually requires corrections to payments via Loan Maintenance. New Behavior With the new enhancement, the system behaves as follows: Normal and Deviant Loan Payments: - With each payment, expected principal and interest is calculated. - Actual Principal Paid and Actual Interest Paid amounts are stored per payment. - Amortization Schedule is referenced only for the Payment Date. Deviant Loan Payments: - Deviant payments for a single participant loan can be processed whether or not the loan ID is present on the file. - Deviant payments for multiple participant loans can be processed only if the loan ID is present for both loans. Each loan must be a separate record in ADT or Payroll. - Deviant payments must cover calculated interest; otherwise, an error displays. Calculated interest is paid first; the remainder is applied to principal. Interest from origination must be covered as well as interest on payments. - If the loan is not up to date on payments, then the earliest payment is paid first. Interest is calculated for the payment period only. Example: If payments 9/15 and 10/15 are not paid, system will pay 9/15 first with interest calculated for the current payment period (i.e. one month only). Impact Loan Repayments made via SchARP Payroll and ADT Financial use the new functionality. February - December 2013 Schwab Retirement Technologies Page 9 of 126

10 Loan Maintenance Payment Detail Enhancement Summary In support of the new loan enhancements, the Edit Detail window in Loan Maintenance is enhanced with additional table columns that include scheduled and actual payment dates, payment amounts, interest amounts, and principal amounts, as well as other data. The payment detail grid is automatically populated during payment processing through ADT or Payroll. In addition, two rows are added at the bottom of the window to indicate the totals scheduled and totals paid for each component of the loan payment. Note: if the Pay Manually indicator is checked, the scheduled payment amounts are reported and the Acutal Payment amounts are zeroed out. February - December 2013 Schwab Retirement Technologies Page 10 of 126

11 Loan Summary Alternative for Loan Application on Participant Web Summary The system is modified to provide an online substitute for the Loan Application if the location of the corresponding documents has not been specified or if all components of the loan application have been suppressed. Loan Application Display If the location of the loan application is specified at the system or plan level, and the loan components have not been suppressed, the loan application will be presented to the participant for review and acceptance during the loan request process on the web. A typical loan documentation package consists of a cover letter, loan application (shown below), promissory note, irrevocable pledge/assignment, and payment schedule. The participant must click I Accept to proceed with the request. February - December 2013 Schwab Retirement Technologies Page 11 of 126

12 Loan Summary Display If the plan does not have a loan application document set for display on the web, a summary of the loan is automatically displayed instead. The summary page, shown below, contains the same loan request information that appears on the Loan Confirmation page. Loan Application Settings The location of the Loan Application settings in Schwab RT Recordkeeping are identified below: Options Locations Define location of applications reports Modify/suppress application content System Level: System Maintenance>Loan Parameters window Plan Level: Plan Maintenance>VRS/OPI>Paperless Settings tab System Level: System Maintenance>Loan Application Plan Level: Plan Maintenance>VRS/OPI>Loan Application tab Note: The options on the Paperless Settings tab apply to all loans, both paperless and paperbased. February - December 2013 Schwab Retirement Technologies Page 12 of 126

13 General Release Pilot Completed Loan enhancements released from February 2012 to August 2013 have successfully passed pilot testing and are now available for use by all clients. User Info A new user guide, SchARP Online Loan Management User Guide, is available from the Resource Center at SchwabRT.com. This guide includes a comprehensive Fast Track that identifies configuration settings across all systems. You can find the user guide on the System Documentation page, shown below. Loan calculation documents are located in the same section. The user guide also provides a General Loan application and related documents, annotated to show the sources from which the data and content was derived. Note: The new Loan user guide is also available from the What s New menu for a limited time. February - December 2013 Schwab Retirement Technologies Page 13 of 126

14 Crystal Reports This release contains minor modifications to the loan application reports. The Crystal report files are available from the SchwabRT.com Resource Center on the Report Library page. FAQ See Appendix B for Frequently Asked Questions (FAQ) about SchARP online loans. February - December 2013 Schwab Retirement Technologies Page 14 of 126

15 New Calculation for Dollar/Unit Residual Values Issue During certain Recordkeeping and SchARP transactions, residual values of $.01 or.001were left after processing, requiring manual correction to account for the fact that a penny or less cannot purchase a fund with a net asset value greater than $10.00 when trading at three decimal places. The following processes were impacted by this issue: Loan Repayment CSTC Late Order Placement Revenue Sharing Allocation Earnings Allocation SchARP Fee Processing Current Behavior Currently, when a penny is not enough to purchase into a fund, the system makes the calculation as demonstrated by the following example: If.01 (Cash) / (price) =.001 (units) The value of the division is which is rounded off to.001. This causes an incorrect estimate in the number of units that could actually be purchased for a specific dollar amount. New Behavior The new calculation will handle the same example as follows: If.01 (Cash) / (price) =.000 (units) The value of the division is The system compares that amount to.001 (when trading at three places) and since is less than.001, the system prevents the amount from being processed. When allocating to a participant s investment elections, the system will use the calculation above to determine if the cash allocated to each investment will purchase a fraction of that investment. If it is determined that the cash is too small based on the current price, the system will shift the cash to other investment(s) in the participants portfolio that have a price low enough to allow the purchase. When the system is allocating a cash amount across a group of participants, such as in earnings allocation, the calculation above will be used to determine whether a participant should participate in the allocation based on whether the cash allocated to that participant will be able to purchase a fraction of a share. If it will not, then the amount will be spread to the rest of the participants that are allocated enough cash to make the purchase. February - December 2013 Schwab Retirement Technologies Page 15 of 126

16 Excel Export Option Added to SchARP Loan Management Dashboard Summary The SchARP Loan Dashboard is enhanced to allow export of loan data to Excel, as shown below: February - December 2013 Schwab Retirement Technologies Page 16 of 126

17 New Plan Search Feature Summary A new enhanced plan search feature has been added to Withdrawal Template Maintenance and Loan/Distribution File Maintenance. The Plan ID field label now provides a link to a separate search window that you can use to locate a plan by Plan ID, Short Name, Title, or Plan Group. When you enter full or partial characters and /or numbers, the system will return all plans that match those criteria for any of the four plan identification parameters. As an alternative, you can access the new search window by placing your cursor in the Plan ID field and typing F2. The search window also provides the ability to resort the table by clicking on the table headers. The new plan search window will be added to other Recordkeeping windows in future releases. Note: The current Plan ID drop down list, which restricts your search to the Plan ID only, is still available for use. February - December 2013 Schwab Retirement Technologies Page 17 of 126

18 Many-to-Many Transfers (General Release Notice) Pilot Completed The enhanced transfer feature has successfully passed pilot testing and is now available for use by all clients. User Info A revised user guide, Schwab RT Web Many-to-Many Transfers User Guide, is available from the Resource Center at SchwabRT.com. Summary The new, optional transfer enhancement allows users to request multiple transfers at the same time. Previously, only one transfer request could be submitted at a time. The new Enhanced Transfer page appears below: February - December 2013 Schwab Retirement Technologies Page 18 of 126

19 Adding the Menu Option To make the Many To Many Transfer feature available to participants in selected plans, use Menu Manager to add the Transfers (Enhanced) menu element to the participant website. Best Practice: When adding the Transfers (Enhanced) page to the website, we recommend that you remove the old Transfers page from the menu. We cannot guarantee system behavior when the old and new pages are made available to participants at the same time. Customizing Page Content If you wish to customize the default page content of the new transfer page, use Content Manger to access and modify the Transfers (Enhanced) page. February - December 2013 Schwab Retirement Technologies Page 19 of 126

20 September, 2013 Enhancements This update to Schwab RT Release 6.0 provides the following enhancements: Payroll Workflow Settings Added to Plan Import Summary As part of our continuing project to enhance the Import Plans module in Plan Maintenance, Payroll Processing workflow settings have been added to the import process. You can use the Import Plans module to import selected plan-level data fields en masse, facilitating the fulfillment of plan conversion and set up requirements. Payroll Settings The following fields, defined on the Payroll Processing window in Plan Maintenance, are added to the Import process: Enable SchARP Payroll Processing - If this value is false (0), the system will not update any of the other workflow settings listed below. - If this value is false (0) and the existing value is true, the system will turn this setting off, disabling SchARP Payroll processing. Workflow Selection The value for this column should be 4, which represents the Census and Payroll Validation workflow, the default SchARP workflow for new payrolls. If the value is not 4, the module will report it as an error. If the Workflow Selection column is not present on the import file, the system will look at the value for the existing plan workflow. If the existing value is not 4, the system will allow updating only of the Approval Required setting. Approval Required Generate Trade Orders Active Source for SchARP Payroll Processing This setting is imported on the Source worksheet of the Plan Import template; all others are imported on the Plan worksheet. Plan Import Template The latest Plan Import template is available from the Resource Center on SchwabRT.com (System Documentation page under Conversion & Data Import Tools). February - December 2013 Schwab Retirement Technologies Page 20 of 126

21 Enforcing IRS Limits During Payroll Pilot Testing in Progress Summary Schwab RT is currently pilot testing the IRS Limits enhancement. When the pilot is complete, we ll advise you when all clients may begin using the new features. The IRS Limits testing feature provides new options that you can use to automatically determine, during the payroll process, whether any participant contributions have exceeded the annual IRS limit for the current payroll or may exceed the limit for the next payroll. This enhancement identifies and prevents contribution violations up front instead of waiting for compliance testing at the end of year to detect and return excess contributions. The following tests are applied during payroll as well as contribution posting and ADT Financial processing: Elective Deferral Limits (released 9/5) The 402(g) salary deferral limitation test compares the participants' salary deferral amounts for the specified testing period with the indexed deferral limit established by the IRS and calculates the amount of violation, if any, for each participant. Catch Up Limits (released 9/5) Tests the allowable amount of additional contributions made by people who are age 50 or over at the end of the calendar year. The catch-up contribution provision was created so that older individuals would be able to set aside enough savings for retirement. Maximum Contribution Limits (released 9/24) Also referred to as the Annual Additions Test, this test checks to see if additions made to the participants accounts during a specified period exceed the IRS limit. If an IRS violation is detected, a critical error message appears and the entire contribution for that source is not processed. If that participant has any other contributions from sources that are not being tested, they will be processed along with the other participants on the payroll file. In ADT Financial and SchARP Payroll, if a contribution is approaching the limit, a warning message appears to let the user know that the limit may be exceeded on the next payroll. Warning messages do not appear during contribution posting. System Level IRS Limits Options The following options are available on the new Annual IRS Limits window in RK SQL System Maintenance: IRS Limit This group of fields displays the IRS Limits for the corresponding tax year. You must update the limits for each new tax year by selecting the year and entering the appropriate limits set by the IRS. These settings are independent of the IRS Test Selection options described below. IRS Test Selection For each IRS Test (Catch Up, Elective Deferral, and Maximum Contributions) you can enable the Test Limit option and the option to Give Warning When Approaching Limit. Transaction Date to Use When determining the total contribution for the testing period, this option determines whether to include transactions occurring on or after the As of Date or the Process Date. Note: The As of Date entered in Contribution and Forfeiture Posting, ADT Financial, and SchARP payroll controls which year is used for the IRS Limit tests. For example, if an As of Date of 12/15/1012 is entered, the system would use the IRS Limits for 2012 and pull transactions from 2012 to determine the total contribution amount. February - December 2013 Schwab Retirement Technologies Page 21 of 126

22 System Level IRS Limits Options (cont.) The new Annual IRS Limits window appears below. February - December 2013 Schwab Retirement Technologies Page 22 of 126

23 Plan Level IRS Limits Options IRS Limit options are also available at the plan level, allowing you to override the system level settings for individual plans. The options are located on the IRS Test Settings window in Plan Maintenance under Plan Level Settings. To be included in IRS Limit testing, the corresponding test option must be selected at the plan or system level. Testing for Elective Deferral Limit and Catch-Up Contribution Limit will include only those sources that have the Include in 402g option selected on the Compliance Options window in Plan Maintenance/Source Level Settings, shown below. Testing for Maximum Contribution Limit will include only those sources that have the Include in 415(c) option selected on the same window. Plan Maintenance/Source Level Settings/Compliance Options: February - December 2013 Schwab Retirement Technologies Page 23 of 126

24 New ADT Financial Error Messages In support of the new IRS Limit testing options, System Maintenance is enhanced with new error and warning messages. The new settings, highlighted below, are located on the Financial Error Settings window under Process Setup/ADT Settings. These errors and warnings will appear as needed during IRS Limit testing in the following applications: ADT Financial/C150 SchARP Payroll History page and Validation grid The following codes are used in the messages to represent data that is automatically populated by the system: 0 = Year C = Currency (dollar amounts, first, second, and third) Critical Errors: Non Critical Errors: February - December 2013 Schwab Retirement Technologies Page 24 of 126

25 Exception Reports IRS Limit messages are displayed on the screen during payroll processing and also appear in error reports generated by ADT Financial and in Payroll exception reports available in the SchARP Monitor. In these reports, the IRS Limits errors messages are included along with any other errors encountered during processing. The following examples of critical and non critical IRS Limit messages are excerpted from the ADT Financial report: Note: Participant current total refers to the total YTD participant contributions from all sources included in 402(g) testing. Critical Error Messages Example 1: Participant current total = $17,000.00; contribution on payroll file = $600.00: SSN Contribution by Source (XYZ Payroll) 2013 IRS Deferral Limit: $17, Participant Total: $17, Contrib $ not processed. Example 2: Participant current total = $22,000.00; contribution on payroll file = $1,080.00: SSN Contribution by Source (XYZ Payroll) 2013 IRS Deferral Limit with Catch Up: $23, Participant Total: $23, Contrib $1, not processed. Non Critical Error Messages Example 1: Participant current total = $16,250.00; contribution on payroll file = $700.00: SSN Contribution by Source (XYZ Payroll) 2013 IRS Deferral Limit: $17, Participant within $ after post of $ (Total: $16,950.00) Example 2: Participant current total = $21,000.00; contribution on payroll file = $1,100.00: SSN Contribution by Source (XYZ Payroll) 2013 IRS Catch Up Deferral Limit: $23, Participant within $ after post of $1, (Total: $22,100.00) Note: If a participant has multiple contributions on the same payroll file, those contributions are aggregated for all sources included in the test. If a violation of IRS Limits occurs, the aggregate amount of that participant s contributions is not processed. On the subsequent report, the aggregate amount of contributions appears as multiple entries, with each entry representing a specific contribution, as shown in the following example: February - December 2013 Schwab Retirement Technologies Page 25 of 126

26 IRS Limits Report (for Plan Sponsors) For the benefit of Plan Sponsors, a separate report named IRSLimits_Testing.csv is generated during ADT Financial and SchARP Payroll processing. The file includes any participant warnings and errors that occurred due to IRS Limit testing. For ADT Financial, the report is created in the directory where the other CSV files are created. In SchARP Payroll processing, the report is generated during the Validation step and listed in the report section, as shown below. At this point in the process, the Payroll Validator can correct the offending contribution amount (or set it to $0.00) and proceed with processing. The report is also available on the Payroll History page, on the detail window for the corresponding payroll event. The report is linked under the Storing Financial Data and Financial Edit steps, as shown in the following example. A sample of the IRSLimits_Testing.csv report appears below. February - December 2013 Schwab Retirement Technologies Page 26 of 126

27 Redemption Fee Added to Loan and Transfer Confirmation Summary If a contingent redemption fee is incurred in the process of requesting a loan or transfer, information about the estimated redemption fee is included on the Confirmation page that is displayed on the participant website. February - December 2013 Schwab Retirement Technologies Page 27 of 126

28 August, 2013 Enhancements This update to Schwab RT Release 6.0 provides the following enhancements: Loan Administration Enhancements: Payment Methods Summary This phase of the Loan Administration project provides Loan Payment Methods (Check, ACH, Direct Wire) that participants can choose when requesting a loan. This release also provides the ability to associate fees with each Loan Payment Method. These new options are available only with the new enhanced paperless loan process on the participant web and manually through recordkeeping. Defining Loan Payment Methods New loan payment options are available in Schwab RT Administration, under Plan Options>View/Update Options (New)>Web Options>Distribution Options>Loans. For each paperless loan type (General, Residential, and Hardship) you can select the appropriate payment methods (Check, ACH, Direct Wire) that will be available for selection on the participant website during the loan request process. Notes: You must click the Enable Editing button in order to change settings. If all Paperless Loan Payment Method options are turned OFF, the following message appears when you click Continue: If Paperless Loans is enabled, the Payment Method will default to Check. New loan payment options are also available under the old Plan Options at Plan Options>View/Update Options>Environmental Options>Web Options>Loan Options. February - December 2013 Schwab Retirement Technologies Page 28 of 126

29 Requesting a Loan When the participant requests a loan on the web, the payment methods turned on in Schwab RT Administration will appear on the Contact Information page, along with Special Handling instructions. Participants must select the Payment Options, enter the required information, and click Submit to proceed to the next step in the Loan Request process. If ACH is selected as the payment method, the following fields are displayed for completion by the participant: If Wire is selected as the payment method, these fields appear: February - December 2013 Schwab Retirement Technologies Page 29 of 126

30 Requesting a Loan (cont.) The Payment Method selected by the participant is reflected on the Loan Application, shown below, the Loan Confirmation page, and the Loan Dashboard details. Plan-Level Payment Method Fees The Loan Parameters>Fees window in Plan Maintenance is enhanced to allow recordkeepers to set fee amounts for General, Residential, and Hardship loans. The Payment Method Fee amount is added to the Origination Fee for processing at the time of origination. Example: Origination Fee = $100, Check Fee = $0.00, ACH Fee = $50.00, and Wire Fee = $25.00 If participant chooses ACH Payment Method, the participant pays a Total Loan Origination Fee of $ February - December 2013 Schwab Retirement Technologies Page 30 of 126

31 Loan Modules In Recordkeeping, loan payment options are added to the following modules: Establish New Loans (Add Loans window) Loan Consolidation (Establish Loans window) These payment options allow recordkeepers to record this information on behalf of participants who do not have access to their accounts via the Web. For participants who provide payment information during the request loan process on the Web, their information automatically populates the corresponding fields in Recordkeeping. The Payment Options on the Add Loans window in the Establish New Loans module appears below. The same set of options appears in Loan Consolidation. Payment method fees defined in Plan Maintenance are also shown on the Establish New loans window. Note: The Distribution Detail window in Loan/Distribution Maintenance displays Payment Method information entered via the participant web and from loans manually created in Recordkeeping. Loan Payment method fees and origination fees are batched together on the LDT Record. February - December 2013 Schwab Retirement Technologies Page 31 of 126

32 ADT Financial Data Elements The following new data elements are added to ADT Financial: 3171 NAME ON ACCOUNT 3172 BANK NAME 3173 BANK CITY 3174 BANK STATE 3175 BANK ZIP 3176 PAYMENT METHOD FEE Existing data element 3070, previously used for ACH, has been updated to support all three loan payment methods. If you plan to use the enhanced loan payment options, you must modify the values for element 3070 as follows: 3070 LOAN PAYMENT METHOD (Check/ACH/Wire) New values: 21 or 1 - ACH 22 or 2 - Direct Wire 0 - Check Previous values: 21 or 1 - ACH - Yes 22 or 2 - ACH - No. February - December 2013 Schwab Retirement Technologies Page 32 of 126

33 Many-to-Many Transfers Pilot Testing in Progress Summary Schwab RT is currently pilot testing the Many-to-Many Transfers enhancement. When the pilot is complete, we ll advise you when all clients may begin using the new features. This release provides a new, optional enhancement to the fund transfer process that allows users to request multiple transfers at the same time. Previously, only one transfer request could be submitted at a time. New Transfer Page To allow many-to-many transfers, a new Transfers (Enhanced) web page, shown below, is available for addition to the participant menu. After selecting the Transfer Type, the participant can enter one or more percentages or amounts in the Transfer From column and one or more percentages or amounts in the Transfer To column. As long as the amount totals in each column are equal, the transfers can be spread in any percentage or amount to any available investments. In the following example, a total of $ is being transferred from three different funds and distributed, in different amounts, to two other funds. February - December 2013 Schwab Retirement Technologies Page 33 of 126

34 New Transfer Page (cont.) The columns in the enhanced transfer table are defined below: Investment Name The description of the investment as defined in Investment Maintenance. Links Shows icons linking to fund prospectus, fact sheet, and website. Fee/Policy Uses icons to inform the user when redemption fees and/or excessive trading policies apply to a fund. Balance Fund balance or liquid portion of Personal Choice Retirement Account (PCRA). Available to Transfer Amount available for transfer with sale cap. Transfer From Amount to transfer from (sell) this fund. Defaults to zero. If shaded, no sales are permitted for this fund. Transfer To Amount to transfer to (buy) this fund. Defaults to zero. If shaded, no purchases are permitted for this fund. Restrictions This icon indicates that a transfer from or to this fund is restricted due to cap limits, competing funds/equity wash, Rule 22C-2 block, excessive trading, stock liquidity, or active loans. Projected Balance Provides the estimated fund balance if a transfer is processed. If applicable, the user must check the box at the bottom of the page to acknowledge acceptance of a pending redemption fee. When the participant clicks Transfer, all requested transfers are processed at the same time. System logic prevents transfers between competing funds and enforces existing transfer limits, redemption fees, and trading restrictions. February - December 2013 Schwab Retirement Technologies Page 34 of 126

35 Confirmation Following submission of the transfer request, a confirmation page is displayed, as shown below. The confirmation page provides a confirmation number and represents the entire transaction, itemizing each fund and the corresponding amount taken from or distributed to the fund. February - December 2013 Schwab Retirement Technologies Page 35 of 126

36 Pending Activity Until the transaction is updated through the VRS/OPI Update module in Recordkeeping, the transaction will appear on the Pending Activity page, where the participant can view the transaction and cancel it, if necessary. Note: Only one transfer is allowed to be pending per source at a given time. To request another transfer, the first must be canceled. Participant Notification After the transfer request is processed, a single or paper notification, depending on the participant's chosen preference, is sent to the participant to confirm the financial transaction. A sample transaction appears below: February - December 2013 Schwab Retirement Technologies Page 36 of 126

37 Best Practice When adding the Enhanced Transfer page to the website, we recommend that you remove the old Transfer page. We cannot guarantee system behavior when the old and new pages are made available to participants at the same time. February - December 2013 Schwab Retirement Technologies Page 37 of 126

38 Statement Generator Enhancements Summary This release includes the following enhancements to the Statement Generator module (CP20): Increased the unit precision for ROR / YTD ROR to 5 Increased the unit precision for units to 9 Increased the unit precision for prices to 5 Added a new option, Include Census for All Participants, under Select Report Options to extract census data for all participants (turned off by default). Added a new option, Use Single Tax Map for ALL Plans, on the main parameters page. If enabled, this option uses the specified tax map for all plans selected, overriding plan level map selection. Best Practice: If you have any of the modified fields on your reports, we recommend that verify the database using the following procedure: 1. In Crystal Reports, open the report you want to use for the Statement Generation process. 2. On the menu, click Database Verify Database. 3. Crystal Reports validates the selected report for the correct table and stored procedures. February - December 2013 Schwab Retirement Technologies Page 38 of 126

39 Enhanced Ad-Hoc Reports for Sponsors/Advisors Summary In April, 2013, we released a new Schwab RT feature that lets Plan Sponsors and Financial Advisors generate custom SchARP reports directly from their home pages on the Web. An is sent to notify the user that the report is ready for review. In this release, the following enhancement is available: If a requested report is not generated due to lack of data, an notification is sent to the Plan Sponsor or Financial Advisor stating: <report name> was not generated no information to report. Fund Financial Components Added to Plan Import Summary As part of our continuing project to enhance the Plan Import application, the Fund Financial Components (values 64 69) have been added to the import process. The latest plan import template is available from the Resource Center on SchwabRT.com (System Documentation page under Conversion & Data Import Tools). February - December 2013 Schwab Retirement Technologies Page 39 of 126

40 Klein Decisions IPM Settings Summary A new Plan Maintenance setting allows you to display the underlying funds in an Investment Portfolio Model (IPM) on Klein Decisions Retirement Progress Reports, which are provided on the K4 Plan Goals website. The new option is located on the Investment Controls window, as shown below. Note: The new Klein IPM setting is also included on the updated Plan Import template, available from the Resource Center on SchwabRT.com. February - December 2013 Schwab Retirement Technologies Page 40 of 126

41 IPM Allocation Enhancement Summary The Investment Program Allocation module (c067), used to rebalance Investment Portfolio Models (IPMs), is enhanced to handle the Minimum Adjustment Amount in a more efficient manner. Prior to this release, if a single fund in an IPM in a participant s account had a balance greater than the minimum balance, the IPM was rebalanced. With this release, the previous logic is retained, with the following enhancement: If a fund in an IPM has a balance and the new allocation percent is zero, the IPM is rebalanced, regardless of the minimum. This modification allows a recordkeeper to set a minimum value in order to reduce the number of small transactions, but also allows for a fund to be completely liquidated when necessary. February - December 2013 Schwab Retirement Technologies Page 41 of 126

42 June, 2013 Enhancements This update to Schwab RT Release 6.0 provides the following enhancements: Payroll Notice of Deposit (NOD) by Plan Division Pilot Testing in Progress Schwab RT is currently conducting pilot testing of the new Payroll Notice of Deposit by Division feature with several clients. During the pilot, the new NOD settings will be made available only to participants in the pilot program. After the pilot is completed successfully, we will advise you when all clients may begin using the new features. Purpose This release provides the ability to process and submit Payroll Notice of Deposit by the divisions within a plan. Supported Workflow The NOD by Division feature is available for use only with the Census and Payroll Validation workflow. NOD by Division is not available for use with the Payroll Default and Custom workflows, which were retired in June, 2012 and are no longer supported. Plan Level NOD Settings The Notice of Deposit tab on the Payroll Processing window in Plan Maintenance allows you to enable creation of the NOD file for the plan, select the approval setting, enter the account information, and define the default NOD settings. The plan-level default NOD settings are used for all divisions in the plan unless overridden at the division level. February - December 2013 Schwab Retirement Technologies Page 42 of 126

43 Division Level NOD Settings To override the plan-level NOD settings, do the following: 1. On the Payroll Cycles tab, select an existing division to edit or create a new one. 2. In the Notice of Deposit Settings (Division Level) section at the bottom, deselect Use Plan Settings and select the appropriate NOD Payment Method and NOD Account. 3. Click Save to Grid. February - December 2013 Schwab Retirement Technologies Page 43 of 126

44 Division Level NOD Settings (cont.) Note: In order to access the Notice of Deposit Settings at the division level, the following settings must be enabled and saved: Enable SchARP Payroll Processing (Plan Maintenance/Payroll Processing Settings tab) Create CSTC Notice of Deposit (NOD) File (Plan Maintenance/Payroll Processing/ Notice of Deposit Settings tab) SchARP Processing During SchARP payroll processing, the system: Determines the NOD amounts per division for all divisions using division level NOD settings and displays a separate record for each division. Aggregates NOD data for all divisions set up to use Plan Level Account and displays them in a single record. In this example, the NOD page shows separate records for divisions 100 and 200. In the last row (Division 0 ) all divisions that use plan level settings are aggregated in a single record. If you hover over the ellipsis, the other divisions included in the record are shown. Each record includes a division-specific allocation breakdown which appears when you click the View link in the Details column. Special Note: When running payroll for multiple divisions, if you enter an amount in the Forfeiture or Adjustment columns on the Control Totals page, the amount(s) will be listed in the Control Totals section at the top right of the NOD page. The amount of forfeitures and adjustments is not reflected in the division records until you adjust the allocation record for the appropriate division(s) (via View link in Details column) to make the Control Total and NOD Total agree. If the totals are not equal when you save the NOD page, a message appears giving you the option to adjust the allocation breakdown or to continue with unequal totals. Notes: In the Allocation Breakdown for NOD records, the Roth Contribution amount is now shown on the Roth Contribution Amount line instead of the After Tax Contribution line. The NOD submission process does not support the use of the browser's Back button. February - December 2013 Schwab Retirement Technologies Page 44 of 126

45 Payroll History Upon submission of the NOD file to the Schwab Retirement Center (SRC), the NOD Upload column on the Payroll History page shows the date the file was uploaded. When you click on the payroll event, the Notice of Deposit tab on the detail window displays the NOD confirmation number and other pertinent information. February - December 2013 Schwab Retirement Technologies Page 45 of 126

46 SchARP Payroll History Enhancements Summary The Payroll History page is enhanced with the ability to Export Payroll History to Excel Identify events with financial or synoptic errors without accessing processing details History Extract A new button on the Payroll History page exports all history data to an Excel file, providing a convenient way to report payroll progress to necessary parties. The report is not stored in the database unless the user saves file. Default file name format: ExportedPayrollHistorymmddyyyyhhmmss. A sample Payroll History extract is shown below. February - December 2013 Schwab Retirement Technologies Page 46 of 126

47 Exception Indicator A new Exceptions During Update column on the Payroll History dashboard allows you to see, at a glance, which payroll events have generated errors during the Synoptic Update or Financial Update process. If an error file (.csv) exists for the Financial Update or Synoptic Update, an exception icon appears in the Exceptions During Update column of the corresponding row, eliminating the need to open the payroll details to identify errors. If an error file does not exist, the Exceptions During Update column appears blank. The Exceptions During Update column includes a filter that you can use to display only events with exceptions (True), only events without exceptions (False), or both (Clear Filter), which is the default setting. February - December 2013 Schwab Retirement Technologies Page 47 of 126

48 New Plan Sponsor Loan Notification Option A new Loan Monitoring option is now available in Schwab RT Administration Security User Wizard under SchARP System Specific Settings. If selected, the new Loan Notification Required option sends an notification to the Plan Sponsors to let them know that a new loan application has been submitted, even if that loan application does not require approval. A single notification is sent when a new loan is processed via VRS/OPI Update. Note: Loan approval options are located on the VRS/OPI Paperless Settings tab in Plan Maintenance. The existing Loan Approval Required monitoring option generates an notification when a loan application is received that requires approval. To receive notifications, the Plan Sponsor must also be assigned one of the SchARP loan dashboard roles. Loan monitoring notices include information about each loan and a link to the Loan Management Dashboard. By default, the loan monitoring options are not selected. February - December 2013 Schwab Retirement Technologies Page 48 of 126

49 Enhanced Employee Census Report (Phase 2) New Admin Options In this second and final phase of the project to enhance the Employee Census report for Plan Sponsors and Financial Advisors, new options are available in Schwab RT Administration that reocrdkeeper can use to Allow Plan Sponsors and Financial Advisors to add additional data columns to the report (defaults to No). Determine which data columns are available to users by default and which data columns can be added to the report by the user, if the user is permitted to do so. The recordkeeper can also choose to restrict certain data columns, making them unavailable to users when they run the report. The new options are available on the Online Census Report page, a new option on the Report Options menu in Schwab RT Administration. In addition to the option to permit users to customize the report, the page include the following three lists: Restricted Columns Elements in this list are not available for use on the report. Available Columns Elements in this list can be added to the report if users are permitted to modify the report. Destination Columns Elements in this list appear in the report by default. By default, all data columns are listed in the Restricted Columns list. This list includes all data elements from the existing Employee Census report and the Custom Report Generator (CP20) in Recordkeeping. From the Restricted Columns list, you can highlight one or more elements and use the arrows to move them to the Available Columns list and then, as needed, to the Destination Columns list. The up and down arrows at the far right allow you to determine the sequence of the Destination Columns. February - December 2013 Schwab Retirement Technologies Page 49 of 126

50 User Experience Plan Sponsors and Financial Advisors who have been given access to the Enhanced Employee Census Report and who are permitted to modify the default data columns will see the following web page when they select the report from their home page. If the user clicks Add Columns, the column options that have been defined by the recordkeeper appear, as shown below. The user can then move columns from the Available Columns list to the Destination Columns list, and vise versa, with the exception of the name and SSN elements. Restricted data elements do not appear to the user. After adding the appropriate columns to the Destination Columns list, the user can choose to save the customized list for future sessions (Save Columns) or reset to the original default columns. When the user clicks OK, the Employee Census report is generated with the columns from the Destination Columns list. February - December 2013 Schwab Retirement Technologies Page 50 of 126

51 User Experience (cont.) Best Practice: Only one Enhanced Employee Census Report template is allowed for each user; therefore, that template should be customized to reflect the most common compensation method used for the plans. For example, if a Plan Sponsor has access to five plans and three of them use the Salary method of compensation, then the template should include the appropriate Salary Fields. If most plans use Compensation Hours and Tracking (CHT), the template should include Gross Compensation and Testing Compensation formulas. For details on the first phase of this project, see "Enhanced Employee Census Report for Sponsors and Advisors" in the February 2013 section of this document Revised Page Specs for Broadridge Print/Mail Services Summary Page specifications for Participant Fee Disclosure (PFD) reports and estatements have changed. The new specifications ensure that addresses and page footers are positioned correctly, and that adequate space is left in certain locations for insertion of printing bar codes. If you are using Broadridge for your print/mail services, you'll find the new specs in the appendix of the Broadridge Print/Mail Services Implementation Guide, available from the What's New menu in the Resource Center at SchwabRT.com. estatements In addition to the updated specs in the Implementation Guide, a new Broadridge-compliant, estatement template is available from the Resource Center's What's New menu. The estatement template is provided both as a Crystal Reports file and as a PDF file for viewing outside of Crystal Reports. This statement applies only to clients who begin using Broadridge to print their statements after June 20, Broadridge clients who have estatements in place before June 20 are not impacted by the change. PFD Reports The following updated report files can be obtained from the Participant Fee Disclosure page on the Resource Center: Annual Participant Fee Disclosure Report (PFDAnnReport.rpt) Annual Participant Fee Disclosure Cover Letter (PFDAnnLetter.rpt) Change Notification Report (PFDChangeReport.rpt) Change Notification Report Cover Letter (PFDChangeLetter.rpt) February - December 2013 Schwab Retirement Technologies Page 51 of 126

52 Option to Exclude Expunged Participants from Data Extract Summary The Participant Data Extract module (C158) automatically includes expunged participants from the extract. A new Exclude Expunged Participants allows you to exclude participants with an Expunged Status Code from the extract at runtime. Three possible outcomes are possible, based on the available options: Exclude Option is Checked? As of Date is Present? Resulting Extract Yes No Excludes all Expunged participants Yes Yes Excludes all Expunged participants beginning with the specified As of Date No Yes or No Includes all Expunged participants February - December 2013 Schwab Retirement Technologies Page 52 of 126

53 Default Status Code Settings for Earnings Allocation Summary To expedite the task of allocating earnings and revenue shares, new Default Status Codes options are now available on the Earnings/Revenue Sharing window in the RK SQL System Maintenance/C282. The Status Codes selected here will automatically be selected on the Select Status Codes window in Earnings Allocation/C038, with the option to change the settings at runtime. Revenue Sharing Allocation Based on Current Participant Status Summary When processing Revenue Sharing via the Earning Allocation module, the system now uses the current participant status instead of the status from the Periodic Participant File (PPF). Note: PPF records, stored in SQL tables, consist of historical data that changes periodically such as primary status, hours, salary, and investment elections. Numerous applications use the data as the basis for allocations, testing, and reporting. February - December 2013 Schwab Retirement Technologies Page 53 of 126

54 Participant Maintenance Usability Enhancements New Tab Functionality In Participant Maintenance/C004, the Compensation and Hours window is enhanced to allow you to tab from field to field when entering records in the grid, as shown below. RK SQL Report Generator Usability Enhancements Summary This release includes the following enhancements to the usability of the Report Generator/CP50 module: On the Select Plan window, a plan Search option is added to make it easier to find the plan(s) needed to run the report. You can perform full or partial searches using the plan's Short Name, Plan Name, or Plan Group. On the Parameters window, for date fields, the cursor now advances automatically from day, month, and year while typing. Currently, you have to use the arrow key between each segment of the date. Once a report runs and outputs to the screen or to a file, the selected plan and the respective parameters are stored so you don't have to enter the same information again when you return to the Choose Report window. February - December 2013 Schwab Retirement Technologies Page 54 of 126

55 Statement Generator Usability Improvements Access to Report & Database Info Statement Generator/CP20 includes the following enhancements. To improve usability, the Report and Database Information is copied from the Report Setup (F6) option on the File menu to the main window (Report Detail), where you can easily refer to it. The option to Create CSV Data Files is now available in the Database Information section of the main window. February - December 2013 Schwab Retirement Technologies Page 55 of 126

56 Default Print Option On the Select Report Options window, the Suppress Zero Begin and End option is no longer selected by default. The Suppress Zero Investments option will continue to be selected by default. February - December 2013 Schwab Retirement Technologies Page 56 of 126

57 Making Documentation Easier to Find Resource Center Upgrade In response to customer feedback, we've reorganized the Resource Center at SchwabRT.com to consolidate all system documentation on a single page, allowing you to search the entire library at the same time. The new System Documentation button replaces the separate pages for Recordkeeping, SchARP, Web, Call Center, and Voice. To search the page, type Ctrl+F to access the Find function, as demonstrated below. February - December 2013 Schwab Retirement Technologies Page 57 of 126

58 What's New As always, the latest release notes and other new and revised documents are available from the What's New menu located on the home page of the Resource Center. Just move your mouse over the icon and the menu options will appear for selection, as shown below. February - December 2013 Schwab Retirement Technologies Page 58 of 126

59 April, 2013 Enhancements This update to Schwab RT Release 6.0 provides the following enhancements: Ad-hoc Request and Publish Custom Reports for Sponsors/Advisors Summary Schwab RT Web is enhanced with a new feature that lets Plan Sponsors and Financial Advisors generate custom SchARP reports directly from their home pages on the Web. When a requested report is ready, it is automatically published to the website and an is sent to notify the requester that the report is available for viewing. New report administration options let you restrict access to certain SchARP reports. To allow recordkeepers to track the reports requested by Plan Sponsors and Financial Advisors, A new User Requested page is available in SchARP Report History. This enhancement is an extension of the feature that allows recordkeepers to publish SchARP reports directly to one or more Plan Sponsor or Financial Advisors. User Experience The new Generate Reports tab is added to the existing Reports page on the Plan Sponsor and Financial Advisor websites. The first tab, Plan Sponsor Reports, displays reports that are generated by the recordkeeper and published to the Sponsor/Advisor, as shown below. Notes: The existing Web page for published reports is accessed from the predefined Menu Manager link Plan Sponsor Links or Financial Advisor Links (new). You can rename the menu option to Published Reports or other custom name. In Schwab RT Administration, make sure the Exclude from Publishing option is not selected in the Configuration section of the Plan Sponsor Options page or Financial Advisor Options page. If selected, the user will not be able to view the report page. Requested reports will not be generated if an application error occurs or if no data is available. If a requested report fails, sponsors will not be notified and must contact the recordkeeper for more information. February - December 2013 Schwab Retirement Technologies Page 59 of 126

60 User Experience (cont.) The second tab, Generate Reports, provides a list of all reports that are available to the Sponsor/Advisor. After selecting the appropriate report or reports, the user clicks Next Step to advance to the next page. The next page displays report parameters for all selected reports. Any plan or participant data parameters are restricted by the security access settings defined in Schwab RT Administration. After selecting the appropriate report parameters, the user clicks Next Step to advance to the confirmation page. February - December 2013 Schwab Retirement Technologies Page 60 of 126

61 User Experience (cont.) After reviewing the information on the confirmation page, shown below, the user clicks Confirm to generate the report. When a sponsor or advisor requests a report, the Generate Reports workflow in SchARP creates the requested report and auto-publishes it to the user s website. An is sent to notify the user that the report is ready for review. One is sent per submission. A submission may include one or multiple reports. February - December 2013 Schwab Retirement Technologies Page 61 of 126

62 User Experience (cont.) When ready, the report is published to the new User Requested section on the main report page on the Plan Sponsor or Financial Advisor website. User Generated reports are displayed only to the user who generated them. The user can view the report by clicking the corresponding Download button. February - December 2013 Schwab Retirement Technologies Page 62 of 126

63 Tracking User- Requested Reports The Report History page, available from the SchARP Report Center menu, is enhanced with a new User Requested tab that lets recordkeepers track all reports that have been requested by Plan Sponsors and Financial Advisors. Report Event Details, along with a link to the published report, can be accessed by clicking on the corresponding row of the table, as demonstrated below. February - December 2013 Schwab Retirement Technologies Page 63 of 126

64 Enabling Report Access All reports that are currently registered in the Report Wizard (Schwab RT Administration Security) can be made available for request by Plan Sponsors and Financial Advisors using the following new options in the Report Wizard: Allow Plan Sponsor to Generate Allow Financial Advisor to Generate By default, these options are not selected. Plan Sponsors and Financial Advisors will not be able to request a report until you have enabled the corresponding access option(s) for each report. February - December 2013 Schwab Retirement Technologies Page 64 of 126

65 DESS Participant Exclusion Option Definition The Schwab DESS (Distribution Education and Support Services) program allows independent recordkeepers to leverage Schwab's resources to provide terminated participants with required tax notification and other educational materials on their distribution options, along with access to a dedicated call center to help answer questions and support opening and funding an IRA. Exclusion Option A new option is added to the Activity Controls window in Participant Maintenance/C004 that recordkeepers can use to exclude an individual participant from the DESS extract, even if that participant meets other termination criteria. February - December 2013 Schwab Retirement Technologies Page 65 of 126

66 Pre-Tax Withholding Option for Rollovers Summary The following Recordkeeping modules are modified to allow withholding to be applied to rollover pre-tax money so the taxes are paid now instead of later: Distribution Processing Lump Sum distribution/c090 In-Service Withdrawals/C091 Loan/Distribution File Maintenance/C111 Loan/Distribution Extract/C190 Distribution Reporting/CP95 Automated Data Translation/C150 Daily Processing Batch Release/C023 VRS/OPI Update/C552 Trade Data Interchange CSTC Loan/Distribution Export/C114 (aka: AD&D*) * Automated Distributions & Disbursements (AD&D) allows Charles Schwab Bank to receive and accept distribution/disbursement requests electronically from Schwab business partners. Participant Web Distribution Request page (if enabled in Plan Maintenance) Lump Sum Distributions On the Tax Data window for Lump Sum Distributions, the Direct Rollover option is renamed Rollover Pre-Tax and the Yes/No settings are enhanced as follows: Yes (no withholding on Traditional IRA) No (apply withholding) Yes (apply withholding on Roth IRA) (State Withholding section of window not pictured above) February - December 2013 Schwab Retirement Technologies Page 66 of 126

67 Roth Federal Withholding Default In addition to the modified Rollover Pre-Tax options, the Roth Percentage field under Federal Withholding now defaults to 20% when the Federal Withholding Method is set to 20%. This change applies to both Lump Sum Distributions and In-Service Withdrawals. In-Service Withdrawal On the Tax Data window for In-Service Withdrawal, the Direct Rollover option is renamed Rollover Pre-Tax and the Yes/No/Not Eligible settings are enhanced as follows: No (apply withholding) Yes (no withholding on Traditional IRA) Not Eligible Yes (apply withholding on Roth IRA) February - December 2013 Schwab Retirement Technologies Page 67 of 126

68 LDT Maintenance On the Tax Data window for Loan/Distribution File Maintenance, the Direct Rollover option is renamed Rollover Pre-Tax and the Yes/No settings are enhanced as follows, providing the ability to edit withholding information on certain rollovers: Yes (no withholding on Traditional IRA) No (apply withholding) Yes (apply withholding on Roth IRA) If Yes (apply withholding on Roth IRA) is selected, the withholding information for the rollover amount (as well as the normal distributed amounts) will be included in the LDT extract, AD&D Extract, and the Distribution Report. February - December 2013 Schwab Retirement Technologies Page 68 of 126

69 LDT Maintenance (Cont.) On the Add Records window, the Direct Rollover option is changed to Rollover Pre-Tax. If selected, the Rollover Pre-Tax option on the Tax Data window defaults to Yes (no withholding on Traditional IRA) when the new record is inserted. New ADT Option In ADT Financial, the new pre-tax withholding feature is supported by a new option for the existing data element 3028 Direct Rollover Indicator. Following are acceptable values for the Direct Rollover Indicator: 1 Yes (no withholding on Traditional IRA) 2 No (apply withholding) 3 Not Eligible 4 Yes (apply withholding on Roth IRA)--new for this release For Lump Sum templates, the acceptable values for this data element are 1, 2 and 4. For In-Service Withdrawal templates, acceptable values for this data element are 1, 2, 3 and 4. VRS/OPI Update When processing paperless distributions, the VRS/OPI Update module defaults the Roth IRA Federal withholding percentage to 20% when applicable. If the Rollover Pre-Tax option is Yes (apply withholding on Roth IRA), the system sets the Reason Code for the distribution to 10. The Reason Code is shown in the LDT file. CSTC Loan/Distrib. Export When processing a Rollover of Pre-Tax money to a Roth IRA, make sure to select the Reason for Distribution as 10: Taxable Roth Conversion (Pre-Tax to Roth) in the Lump Sum, In-Service Withdrawal, and ADT Financial modules. During AD&D processing, if the Rollover Pre-Tax option is Yes (apply withholding on Roth IRA) and the Reason Code is 10, the DC Record for the rollover amount is assigned a Distribution Type of 30. An additional DC record is created for the Federal withholding amount of the distribution. The Distribution type on this record is 01. February - December 2013 Schwab Retirement Technologies Page 69 of 126

70 Distribution Request via the Web If the Distribution Request page on the participant website is enabled, a new option, Apply Withholding Now (Roth IRA Option) appears under the Rollover Pre-Tax column. In addition, the note (Withholding does not apply) appears under the Rollover After-Tax and the Rollover Roth columns. To enable the Distribution Request page, option 41 Paperless Termination Distribution must be enabled for the Web on the VRS/OPI Setup Options window in Plan Maintenance. If the Distribution Request page is enabled for the Web, participants with a termination date and status will see the new Roth withholding option as soon as your system is updated with the April, 2013 release. February - December 2013 Schwab Retirement Technologies Page 70 of 126

71 Smart Status Codes Pilot Testing The new SchARP business activity, Process Smart Status Codes, will be pilot tested with several clients prior to general release. All other Smart Status Code components (System and Participant Maintenance settings) are available for use with this release. After the pilot is completed successfully, we will advise you when all clients may begin using the SchARP workflow component. Summary With this release, the system is enhanced with Smart Status Code functionality that automates the task of updating the participant s current status, and provides the option to update the participant status in historical records as well. At the system level, each Smart Status Code is associated with a specific participant Status Code. A new SchARP business activity, running as a scheduled workflow job, analyzes key dates that have changed during a user-defined lookback period and, based on status evaluation rules, automatically applies the appropriate participant Status Code. This enhancement also provides the ability to define five leave of absence reason codes at the system level and assign them at the participant level. Fast Track The following steps summarize the settings required to configure Smart Status Codes: Step Application Location Task 1 System Maintenance/C282 2 System Maintenance/C282 3 Participant Maintenance/C004 Category Setup> General System Options> Leave of Absence Reason Codes tab SchARP Settings> Smart Status Settings> Status Codes to Include tab and Status Code Definitions tab Census>Dates> Leave of Absence Dates tab Define Leave of Absence Reason Codes Select Status Codes to include in processing Define Smart Status Codes and historical update options Define the time period and reason for a leave 4 SchARP Automation Center (Designer/Scheduler/Monitor) Create, schedule, and define parameters for SchARP Process Smart Status Codes workflow February - December 2013 Schwab Retirement Technologies Page 71 of 126

72 Leave of Absence Reason Codes On the General System Options window in System Maintenance, a new Leave of Absence Reason Codes tab provides the ability to establish up to five reason codes for a participant leave of absence. At the participant level, these codes are associated with specified leave of absence periods for individual participants. The first code, Military, is pre-populated and cannot be modified. Smart Status Settings The new Smart Status Settings window in System Maintenance under SchARP Settings contains two tabs: Status Codes to Include and Status Code Definitions. You can use the Status Codes to Include tab to indicate, by status code, which participants you want to include in Smart Status Codes processing. In the following example, Smart Status Code processing would be applied only to participants with an Active status code. Note: Management Account and Redemption Fee status codes are disabled. February - December 2013 Schwab Retirement Technologies Page 72 of 126

73 Smart Status Settings (Cont.) You can use the Status Code Definitions tab, shown below, to associate each Smart Status Code, listed at the left, with a specific participant Status Code. By default, all settings are blank. The Smart Status Codes are listed below: Deceased Disabled Eligible Based on Eligibility Date (non-aca) Eligible Based on Participation Date (non-aca) Military Leave of Absence Other Leave of Absence Rehired (Previously Eligible) Rehired (Previously Ineligible) Retired Return from Leave Terminated with Balance Terminated without Balance Terminated (Previously Eligible) Terminated (Previously Ineligible) Terminated Status codes must be based on either Balance or Eligibility. These options are mutually exclusive. For each Smart Status Code, you can also choose the Update Historical Status Records option. By default, this option is not selected. February - December 2013 Schwab Retirement Technologies Page 73 of 126

74 Leave of Absence Dates To track leaves of absence more efficiently, the Dates window in Participant Maintenance provides a new Leave of Absence Dates tab that you can use to indicate the start and stop dates and reason for a participant s leave of absence. The reasons codes available for selection reflect the Leave of Absence Reason Codes defined at the system level. If a Start Date is entered, a Reason must also be selected. The Stop Date can be left blank if not known. Note: To allow importing of the new Date fields and Reason Codes, the following data elements will be added to Automated Data Translation (ADT) Synoptic: Leave of Absence Start Date Leave of Absence Stop Date Leave of Absence Reason ID (valid Values are 1-5) February - December 2013 Schwab Retirement Technologies Page 74 of 126

75 SchARP Workflow The new SchARP Business Activity, Process Smart Status Codes, runs as a scheduled workflow to analyze key date changes within a given time frame and changes participant Status Codes based on the Smart Status Codes defined at the system level. When scheduling the Process Smart Status Codes workflow, you can select one or more plans to be processed and indicate a Lookback period, which defaults to seven days. Enter 0 to restrict the Lookback period to today, enter 1 for yesterday, and so on. The system reviews Activity Tracking for any participant date changes for the selected plans and time period. During the Smart Status Code workflow, the following dates in the system are analyzed, based on the status evaluation rules, to determine if the participant meets the requirements for a status change: Death Date Disability Date Earliest Eligibility Date Participation Date Rehire Date Retirement Date * Start Leave of Absence Date Stop Leave of Absence Date Termination Date * The Retirement Date should reflect the actual rather than the projected date of retirement. Status evaluation rules applied to the Retirement Date assume that the actual date of retirement resides in the Retirement Date field in Participant Maintenance, rather than a projected retirement date. For this reason, if you are not maintaining actual retirement dates for participants, you would not want to define the Retired Smart Status Code in System Maintenance, in order to prevent a change in a participant's retirement date from spawning a status change. Note: If a status change is warranted by SchARP workflow, the change is made automatically to the Status Code field in Participant Maintenance and to the historical status records, if that option is enabled at the system level. Participant statuses in other Schwab RT modules are not impacted by the SchARP status code updates February - December 2013 Schwab Retirement Technologies Page 75 of 126

76 Evaluation Order for Identical Dates If multiple dates for a participant within a specified Lookback period are identical, the system uses the following order to determine which date s evaluation rules to apply. The lower number has higher priority. 1. Death 2. Retirement 3. Disability 4. Termination 5. Leave of Absence 6. Rehire 7. Eligibility/Participation Example: IF: Look Back Period = 2/1/2013 3/1/2013 Participant has the following date changes within the time period: Disability Date Actual Date = 2/28/2013 Termination Date Actual Date = 2/28/2013 THEN: Based on the evaluation order, Disability has a lower number/higher priority than Termination; therefore, the status evaluation rules for the Disability Date should be applied for this participant. Historical Status Update Status codes will be updated in historical records based on the current date if the Update Status in Historical Records checkbox is selected for the status definition in System Maintenance. Example: If a Termination Date of 01/15/2012 is evaluated on 12/15/2012, participant Status Codes will be updated in historical records beginning with 02/2012 through 12/2012. A.csv file will be created that indicates the date analyzed and the status codes and historical status records that are updated for participants. The following data will be displayed in the file: Participant Social Security number Date analyzed Old Status Code New Status Code MMYYYY of each Periodic Participant File (PPF)* record updated (if applicable) * Periodic Participant File, referred to as PPF records, stored in SQL tables, consist of historical data that changes periodically such as primary status, hours, salary, and investment elections. Numerous applications use the data as the basis for allocations, testing, and reporting. February - December 2013 Schwab Retirement Technologies Page 76 of 126

77 Reports The SchARP Monitor provides links to Smart Status Code reports when workflow processing has completed. Note: The Monitor status icon is blue if workflow is completed successfully without a business exception. The icon is orange if workflow is completed successfully but generates a business exception. Smart Status Codes Report The Smart Status Codes Report shows all status codes changes made for the selected Lookback period. Both old and new status codes are shown. A sample Smart Status Codes Report appears below: Exception Report A sample Smart Status Codes Exception Report appears below: February - December 2013 Schwab Retirement Technologies Page 77 of 126

78 Exception Report Scenarios The Smart Status Code Exception Report captures several possible data scenarios, described below: In some situations, even if a participant meets the requirements for a status change, his status will not be changed if his current status is Suspended. The status evaluation rules detail this information for applicable dates/statuses. If a participant has multiple date changes within the Lookback period, the latest actual date is used for the evaluation. Example: IF: THEN: A participant had a change to the following dates within the specified lookback period: Disability Date Actual Date - 03/10/2013 Termination Date Actual Date - 03/14/2013 The status evaluation rules for the Termination Date test would be applied because the Termination Date is later than the Disability Date. If a participant has multiple date changes within the Lookback period and the actual dates are the same, the order of date evaluation is used. All of the above scenarios would be reported on the Exceptions Report. New Data Elements In support of Smart Status Code functionality, the new data elements are added to ADT Synoptic/SchARP Payroll and Participant Data Extract. ADT Synoptic/SchARP Payroll: Leave of Absence Start Date Leave of Absence Stop Date Leave of Absence Reason ID Participant Data Extract: Leave of Absence Start Date Leave of Absence Stop Date Leave of Absence Reason ID Best Practice: Before running the Smart Status Codes workflow for the first time, we recommend that you populate the new Leave of Absence dates for any applicable participants. To help identify which participants might need to have their dates populated, you can use the new Participant Data Extract option to generate a.csv file for each plan that lists participants currently in a Leave of Absence status. If you are not able to update the leave dates prior to running the job, you can choose to exclude participants currently in Leave of Absence status in the Smart Status Codes tests by using the Status Codes to Include tab in System Maintenance. For information on the new Participant Data Extract option, see "Ability to Generate Separate Participant Data Extracts Per Plan" later in this document. February - December 2013 Schwab Retirement Technologies Page 78 of 126

79 Evaluation Rules The following rules are applied by SchARP Smart Status Codes workflow when analyzing participant dates to determine status code updates based on defined statuses: Note: SSC = Smart Status Code Date: SSC: Rule: Death Date Deceased IF Death Date < OR = current date Date: SSC: Rule: Disability Date Disabled IF Disability Date < OR = current date AND current status is not equal to Suspended status defined at plan level Date: SSC: Rule: Earliest Eligibility Date Eligible Based on Eligibility Date (non-aca) IF plan level Date to Use in Comparison = Eligibility AND Allow Automatic Contribution Arrangement = N AND Earliest Eligibility Date > OR = beginning date of Look Back Period AND < OR = current date AND Termination Date < Rehire Date OR Termination Date = 00/00/0000 Date: SSC: Rule: Participation Date Eligible Based on Participation Date (non-aca) IF Plan level Date to Use in Comparison = Participation AND Allow Automatic Contribution Arrangement = N AND Participation Date > OR = beginning date of Look Back Period AND Participation Date < OR = current date AND Termination Date < Rehire Date OR Termination Date = 00/00/0000 Date: SSC: Rule: Rehire Date Rehired (Previously Eligible) IF Rehire Date < OR = current date AND Rehire Date > Termination Date AND Earliest Eligibility Date < OR = Rehire Date AND Plan level Date to Use in Comparison = Eligibility OR IF Rehire Date < OR = current date AND Rehire Date > Termination Date AND Participation Date < OR = Rehire Date AND Plan level Date to Use in Comparison = Participation February - December 2013 Schwab Retirement Technologies Page 79 of 126

80 Date: SSC: Rule: Rehire Date Rehired (Previously Ineligible) IF Rehire Date < OR = current date AND Rehire Date > Termination Date AND Earliest Eligibility Date > Rehire Date OR Earliest Eligibility Date = 00/00/0000 AND Plan level Date to Use in Comparison = Eligibility OR IF Rehire Date < OR = current date AND Rehire Date > Termination Date AND Participation Date > Rehire Date OR Participation Date = 00/00/0000 AND Plan level Date to Use in Comparison = Participation Date: SSC: Rule: Retirement Date Retired IF Retirement Date < OR = current date AND current status is not equal to Suspended status defined at plan level Date: SSC: Rule: Start Leave of Absence Date Military Leave of Absence IF Leave Start Date < OR = current date AND Leave Stop Date > current date or 00/00/0000 AND Leave of Absence Reason Code is equal to Military AND current status is not equal to Suspended status defined at Plan level Date: SSC: Rule: Start Leave of Absence Date Other Leave of Absence IF Leave Start Date < OR = current date AND Leave Stop Date > current date or 00/00/0000 AND Leave of Absence Reason Code is not equal to Military AND current status is not equal to Suspended status defined at Plan level Date: SSC: Rule: Stop Leave of Absence Date Return from Leave IF Leave Stop Date < OR = current date AND current status is not equal to Suspended status defined at Plan level February - December 2013 Schwab Retirement Technologies Page 80 of 126

81 Date: SSC: Rule: Termination Date Terminated with Balance IF Termination Date < OR = current date AND participant current balance > 0 AND Rehire Date < Termination Date AND current status is NOT EQUAL TO Suspended status defined at plan level Date: SSC: Rule: Termination Date Terminated without Balance IF Termination Date < OR = current date AND participant current balance = 0 AND Rehire Date < Termination Date AND current status is NOT EQUAL TO Suspended status defined at plan level Date: SSC: Rule: Termination Date Terminated (Previously Eligible) IF Termination Date < OR = current date AND Rehire Date < Termination Date AND Earliest Eligibility Date < OR = Termination Date AND Plan level Date to Use in Comparison = Eligibility OR IF Termination Date < OR = current date AND Rehire Date < Termination Date AND Participation Date < OR = Termination Date AND Plan level Date to Use in Comparison = Participation AND current status is not equal to Suspended status defined at Plan level Date: SSC: Rule: Termination Date Terminated status (Previously Ineligible) IF Termination Date < OR = current date AND Rehire Date < Termination Date AND Earliest Eligibility Date > Termination Date OR Earliest Eligibility Date = 00/00/0000 AND Plan level Date to Use in Comparison = Eligibility OR IF Termination Date < OR = current date AND Rehire Date < Termination Date AND Participation Date > Termination Date OR Participation Date = 00/00/0000 AND Plan level Date to Use in Comparison = Participation AND current status is not equal to Suspended status defined at Plan level February - December 2013 Schwab Retirement Technologies Page 81 of 126

82 Ability to Generate Separate Participant Data Extracts Per Plan New Output Setting In Participant Data Extract/C158, a new checkbox called Create output file per plan is added after the Output File selection field. When processing multiple plans, if the Create output file per plan option is selected, the system generates separate output files for each plan. Each file uses the specified output file name, followed by the plan name, as shown in the following example: <output file name>_abc.txt <output file name>_mmm.txt <output file name>_xyz.txt If the Create output file per plan option is not selected, a single file is created for all selected plans. February - December 2013 Schwab Retirement Technologies Page 82 of 126

83 Enhanced ADT Synoptic Replace Option Summary This release provides a new Automated Data Translation (ADT) setting that lets you preserve existing participant dates and address in the database when new data is imported into the system via Automated Data Translation (ADT). The new option, Replace Blank Fields Only for Dates and Addresses, is available at both the system level and the ADT Template level. Note: ADT Templates are used to upload synoptic and financial data for SchARP Payroll processing. System Level In System Maintenance, the new option appears on the Synoptic Settings window, which is available in the SchARP Payroll Settings folder, as shown below. By default, the option is not selected, allowing a date or address data element from an import file to replace an existing date or address in the database (blank or non-blank values). If the option is selected, a date or address data element from an import file will replace any corresponding date or address field in the database that is blank. Existing dates and addresses will not be overwritten. February - December 2013 Schwab Retirement Technologies Page 83 of 126

84 ADT Template Level In the Automated Data Translation module, the Replace Blank Fields Only for Dates and Addresses setting is available on the Set Data Elements window. To access the Set Data Elements window, select a template from the Maintain Template window, open the Data Elements Definition window, and click Define Data Elements. For the selected template and data element, you can choose from the following options: Use System Setting (Default setting) Use setting defined in System Maintenance. No Allow existing date or address fields in the database (blank and non-blank values) to be replaced with the corresponding date or address from an import file. Yes Allow date or address fields in the database to be replaced only if they are blank. These settings are available for use only when the following Data Elements are selected: Date data elements listed under the Data Element Type -- Date & Status Fields Address Line 1, Address Line 2, City, State and Zip listed under Data Element Type Synoptic Fields February - December 2013 Schwab Retirement Technologies Page 84 of 126

85 ADT Template Level (cont.) The following examples demonstrate the behavior of the date/address replace options: Example 1 - Existing Service Date Is Not Replaced: IF: Participant has 07/01/2012 in Service Date field in database. ADT import file has Service Date of 12/01/2012. Replace Blank Fields Only for Dates and Addresses option is YES. THEN: Service Date field for Participant is bypassed (not replaced), leaving the date at the current setting of 07/01/2012. Example 2: Existing Service Date Is Replaced: IF: THEN: Participant has 05/15/2012 in Service Date field in database. ADT file has Service Date of 12/10/2012. Replace Blank Fields Only for Dates and Addresses option is NO. Existing Service Date field of 05/15/2012 in database for Participant is replaced with date in import file, which is 12/10/2012. Reporting Two new ADT Synoptic reports, both in.csv format, are available with this release: Not Updated Lists only participants whose dates or addresses were not updated where dates and/or addresses in database vary from date and/or address fields in the import file. Naming convention: ReplaceBlankOnlyFields_NotUpdated.csv Updated Lists participants whose dates or addresses were updated with data from the import file. Naming convention: ReplaceBlankOnlyFields_Updated.csv In addition to the new Synoptic reports, a new column named Replace Blank Fields Only appears on the ADT Template Report to display the setting selected for the Replace Blank Fields Only for Dates and Addresses option. February - December 2013 Schwab Retirement Technologies Page 85 of 126

86 Loan Administration Enhancements (with Configuration Checklist) General Release Pilot testing of Phase 1 and Phase 2 of Schwab RT loan administration enhancements have been successfully completed and is now ready for use by all clients. What s New This phase of Loan Administration includes the following enhancements: Participant confirmation notices Plan Sponsor monitoring Ability to view loan documents on the participant Web Upcoming Loan Payoff Report and New Loan Report Loan Administration Checklist provides a complete summary of loan settings. Note: The ability to request Hardship loans on the participant Web will be available in a future release. Notifications- Participant When a participant requests a loan from his retirement account, a confirmation is sent to the participant provided that a valid is available and that the participant has chosen to receive notifications for financial transactions. A sample participant notification appears below. February - December 2013 Schwab Retirement Technologies Page 86 of 126

87 Notifications- Plan Sponsor Monitoring Plan Sponsors must be assigned the Loan Approval Required monitoring option in Schwab RT security in order to receive an notification when a loan application is received and requires their approval. The Plan Sponsor must also be assigned one of the SchARP loan dashboard roles. The new loan monitoring option is located in the User Wizard under SchARP System Specific Settings, shown below. By default, the option is not selected. In addition to the Loan Approval Required security option, loan monitoring requires that the SchARP business activity Monitor Events with Notifications runs, with the Loans Pending Approval option selected during scheduling. By default, the Loans Pending Approval option is not selected. February - December 2013 Schwab Retirement Technologies Page 87 of 126

88 When the business activity runs, the number of loans that require an notice is displayed on the SchARP Monitor, as shown below. If necessary, a report that lists any invalid s is also generated. Only loans that are actively monitored (where there is a user who receives notice that this loan needs to be approved) are included in the count. If any invalid s were found during processing, the workflow will finish with a business exception status. As part of the SchARP processing, notifications are sent to all Plan Sponsors who are assigned the required loan monitoring permissions and who have a valid . Loan information included in the to the user is based on the user's access rights as a Plan Sponsor to the plan/participant data. The includes a link to the Loan Dashboard in SchARP. A sample Plan Sponsor notification appears below. February - December 2013 Schwab Retirement Technologies Page 88 of 126

89 Loan Documents With this release, the participant can view loan documents on the Loan Summary page on the Web. As shown in the following example, a new Loan Documents tab displays the date the document was added in the dashboard, along with a link to the document. The View column displays the description of the document, as defined on the dashboard. If the description is blank in the dashboard, the View column will show the filename of the document. Note: If the participant Social Security number is part of the filename of the loan application, be aware that it will be visible on the Web if no document description is provided on the Loan Dashboard. Loan Documents can be hidden from the participant using the Loan Dashboard. February - December 2013 Schwab Retirement Technologies Page 89 of 126

90 Loan Reports The following Crystal loan reports are new with this release: Upcoming Loan Payoff Report (Upcoming_Loan_ PayOff.rpt) Provides Plan Sponsors with a report that documents loans approaching the pay off date so that sponsors can stop payroll deductions at the appropriate time. Report Parameters: Select Plan(s) and Number of Payments Remaining. A sample report appears below: New Loans Report (New_Loans.rpt) Provide Plans Sponsors with a report that documents newly requested loans so that sponsors are notified about upcoming new loan payments. Report Parameters: Select Plan(s), Number of Day to First Payment Date, and Include loans Pending Approval (Y/N). Notes: Both reports are available in Report Generator/CP50 or SchARP Generate Reports workflow. SchARP requires that reports be registered using the Report Wizard in Schwab RT Administration. When registering reports, you can enable reports for sponsors or advisors and specify the desired output format. Loan reports apply security restrictions at the plan level but not at the participant level. February - December 2013 Schwab Retirement Technologies Page 90 of 126

91 Enhanced Dashboard The SchARP Loans Dashboard is enhanced with Check Requested indicator as well as other usability improvements. The Check Requested indicator can be maintained on the Loan Details tab, as shown below. New Loan Features by Release Available on the Resource Center at schwabrt.com, the document Loan Administration Enhancements (February 2012 April 2013) consolidates in a single document all loan enhancements released since February, Loan Checklist The Loan Configuration Checklist, beginning on the next page, provides a roadmap to assist you in configuring the system for enhanced loan functionality. UPDATE: An updated checklist is available in the SchARP Paperless Loan Management User Guide, available from the What's New menu and the System Documentation page in the Resource Center. February - December 2013 Schwab Retirement Technologies Page 91 of 126

92 Loan Configuration Checklist This checklist provides a roadmap to assist you in configuring the system for enhanced loan functionality. Consult the online help for field-level help on each window in the sequence. Schwab RT Recordkeeping RK SQL System Maintenance C282 Yes No N/A Comments Process Setup Loan Parameters Prime Interest Rate APR Option Advance First Payment (Days) Loan Application Location Loan Fees Payee Definition Loan Application General Loan Types Define/Suppress Content Residential Loan Types Define/Suppress Content Hardship Loan Types Define/Suppress Content Rejection and Reason Codes Reason ID Descriptions System Settings General Set Payroll by Division to 1 Plan Maintenance C001 Yes No N/A Comments VRS/OPI Paperless Settings Tab Eligible Status Codes Loan Application Location Approval Options VRS/OPI Loan Application Tab General Loan Types Define/Suppress Content Residential Loan Types Define/Suppress Content Hardship Loan Types Define/Suppress Content VRS/OPI Setup Options # 2 Loan Inquiry # 12 Loan Modeling # 20 Request a Loan (Manual by Operator) # 22 Loan Available Inquiry # 38 Loan Payoff Request # 43 Paperless Loans - General # 45 Paperless Loans - Residential # 46 Paperless Loans - Hardship Defaults to system settings Defaults to system settings Defaults to system settings Defaults to system settings February - December 2013 Schwab Retirement Technologies Page 92 of 126

93 Other Plan Features Other Plan Features cont. Spousal Consent Required for Loans Option Payroll Processing Payroll Cycles Tab Payroll Cycles Source Level Settings Select Sources (Summary Grid) Loan Hierarchy per source Investment Level Settings Select Investments (Summary Grid) Loan Fund Added per source (Only one loan fund allowed per source) Loan Hierarchy per source/investment Max. % Loan Avail per source/investment Max. Liquidation % Loan per source/investment Loan Parameters Plan Level Controls Loan Request Options Request Timing Controls Prohibit Loan Options General Loan Options Residential Loan Options Hardship Loan Options Loan ID Assignment Loan Available Repay Loans Loan Parameters Default Settings Interest Rate General Interest Rate Residential Interest Rate Hardship Repayment Method Interest Base Interest Begin Date Loan Parameters Fees General Loan Options Residential Loan Options Fee Payee Selections Plan Demographic Page 1 Plan Administrator Contact Information Participant Maintenance C004 Yes No No Comments Census Identification Federal Marital Status Tip: Use right-mouse Clone option to copy investment settings to bottom of grid Based on Prime Rate at system level Based on Prime Rate at system level Based on Prime Rate at system level February - December 2013 Schwab Retirement Technologies Page 93 of 126

94 Schwab RT Administration Plan Options View/Update Options (New) Yes No No Comments edelivery Options Address to receive ecommunications from Enable Financial Transactions Confirmations Enable Personal Information Confirmation Enable Security Confirmations Loan Cycle Configuration Enable Loan Cycles for Plan Web Options Plan Options Calculate Estimate Redemption Fee Option Web Options Participant Options Allow Participant to Update Address Allow All Participant to Change their Address Web Options Distribution Options Show Special Handling Instruction Box Enable Check as Delivery Method Enable ACH as Delivery Method Enable Wire as Delivery Method Enable Loan Refinancing Pending Sale Block Loan Request Block Terminated Participant Loans Web Options Summary Options Spousal Consent on Participant Summary Security User Wizard Yes No N/A Comments Assign SchARP System Roles for Loan Users Assign Loan Approval Required (Monitoring Tab) Web Options Menu Manager Yes No N/A Comments Add predefined element Loans to menu Web Options Content Manager * Yes No N/A Comments Loan V2 Loan V2 Cancel Loan V2 Confirm Loan V2 Request Loan V2 Review Loan V2 Verify and Payment Use only for Loan Consolidation This option provides all enhanced loan functionality for participants Home page for enhanced loans February - December 2013 Schwab Retirement Technologies Page 94 of 126

95 Schwab Automated Retirement Processing (SchARP) Automation Center Yes No No Comments Workflow Designer Create the Monitor Events with Notifications workflow, if it does not already exist Workflow Scheduler Schedule the Monitor Events with Notifications to run daily, and select the Loans Pending Approval workflow parameter This workflow is also used to create Payroll and Compliance events Required for Plan Sponsor loan notifications * Optional Notes: To monitor loan activity and approve/reject loans, use the SchARP Loan Administration Dashboard, available from the Plan Center menu in SchARP. Loans Pending Approval Workflow output (counts) can be viewed in the SchARP Workflow Monitor. SchARP Loan reports can be generated using the Generate Reports workflow in SchARP or the CP50 module in Recordkeeping. February - December 2013 Schwab Retirement Technologies Page 95 of 126

96 Klein Decisions K 4 Plan Goals Pilot Testing in Progress Schwab RT is currently conducting pilot testing of the new Klein Decisions K 4 Plan Goals feature with several clients. After the pilot is completed successfully, we will advise you when all clients may begin using the new features. IPMs Klein Decisions handles four basic variations of Investment Portfolio Models (IPMs), as described below: 1. No Portfolios provided in Schwab RT data feed: Multi-Fund Portfolios (to be fulfilled by picking multiple funds on the Take Action page on the K 4 Plan Goals Web) are created using KDA Portfolios. A minimum of Large Cap & Stable Value funds are required to create KDA models for a plan. 2. Portfolios provided in Schwab RT data defined by using > 1 Single Asset Class funds: Portfolios are created as Multi-Fund Portfolios (to be fulfilled by picking multiple funds on the Take Action screen). 3. Portfolios provided in Schwab RT data defined by using 1 Multi-Asset Class fund: Portfolios are created as Multi-Fund Portfolios (to be fulfilled by picking multiple funds on the Take Action screen). 4. Portfolios provided in Schwab RT feed defined by using either >1 Multi-Asset Class funds or a mix of Single Asset Class funds and Multi-Asset Class funds: This variation is not supported by Klein Decisions. User Guide & Supporting Documents The Klein Decisions K 4 Plan Goals User Guide is available from the What's New menu in the Resource Center at schwabrt.com. In addition to the user guide, the following documents, provided by Klein Decisions, are available from the Resource Center. These documents can be used to answer questions about K 4 Plan Goals methodology, and to support your Plan Sponsors and their participants with investing tutorials and a preview of the K 4 Plan Goals website. K 4 Plan Goals Frequently Asked Questions K 4 Plan Goals Participant Online Experience Get on Track for Retirement* Investing Basics* * Allows for client branding (sponsor name/logo and plan name) on the first slide. February - December 2013 Schwab Retirement Technologies Page 96 of 126

97 February, 2013 Enhancements This update to Schwab RT Release 6.0 provides the following enhancements: Plan-Level Passcode for Self-Enrollment Summary The plan level passcode enhancement allows new participants to use a plan-specific passcode, provided by the Recordkeeper, to log on to the Schwab RT Web where they can enter their name and date of birth, create their own password, and enroll themselves in the system. Assigning the Plan Passcode As the first phase of a project, released in December, 2012, a Plan Level Enrollment Passcode field was added to the VRS/OPI window in Plan Maintenance. The Plan Level Enrollment Passcode field accepts from 1 10 alphanumeric characters and must be unique. The passcode is case sensitive and cannot include symbols. If you enter a passcode that is in use by another plan, the system will not allow you to save it, displaying a message that identifies the plan to which that passcode is assigned. February - December 2013 Schwab Retirement Technologies Page 97 of 126

98 Self- Enrollment On the Web The second phase of the project, included in this release, allows new participants to log in to the Web using their Social Security number and plan passcode (instead of PIN). Depending on the Social Security number and passcode entered on the logon page, the system responds in one of the following ways: Participant SSN Plan Enrolled Passcode in Plan? Alternate ID? System Response New to system Valid No No Create new participant and allow enrollment in plan. New to system Invalid No No Show error message on login screen; do not permit enrollment with invalid passcode. Exists in system Valid Yes No Show error message. Participant is already enrolled in the plan and must use existing valid PIN or password, not the passcode, to login. Exists in system Valid No No Create new participant and allow enrollment in plan. This participant is already enrolled in another plan. Exists in system Valid No Yes Create new participant and allow enrollment in plan. This participant is already enrolled in another plan with an Alternate ID defined in Schwab RT Admin. At next login, user must use Alternate ID instead of SSN. February - December 2013 Schwab Retirement Technologies Page 98 of 126

99 Self- Enrollment On the Web (cont.) If the new participant s Social Security Number and passcode are accepted, the New Participant Enrollment page appears, as shown below. The participant must enter the First Name, Last Name, Birth Date, and then create a PIN or Password, based on plan rules. When the information is submitted, the new participant record is created and assigned a status of Eligible to Enroll. Default investment elections, if applicable, are created based on the date of birth entered by the participant. The new password is created immediately, and the plan passcode becomes invalid. The participant is then guided through the Online Enrollment process. The participant s name and date of birth are automatically populated on the My Information page. If image-based enrollment is enabled for the plan, the selection of the participant s secret image or images occurs during the next login after the enrollment process is complete. Notes: If the participant logs off without providing the required information, the participant record in NOT created and the New Participant Enrollment page will be presented again the next time the participant logs in with the plan passcode. If running Data Validation test 27 Missing Date of Participant or Eligibility, selfenrolled participants will fail the test until the missing date is provided by the recordkeeper. The division code for all plans defaults to zero so all self-enrolled participants will be assigned to Division 0 until a different division is assigned by the recordkeeper. February - December 2013 Schwab Retirement Technologies Page 99 of 126

100 Report In SchARP Report Generator (or Recordkeeping CP50), a new report (PLPParticipantData.rpt) is available that shows all self-enrolled participant records for a specified period. The workflow parameters for the report let you select specific plans and specify the number of past look back days to include in the report. A sample report appears below: February - December 2013 Schwab Retirement Technologies Page 100 of 126

101 Inclusion in Hardship Calculation Based on Source Type Current Behavior In Plan Maintenance, under Source Level Settings > Distribution Specifications, the Include in Hardship (Non 401(k)) option determines whether amounts from the selected source are included in the calculation for hardship withdrawals. This option applies only to the Post-tax, Company, and Pre-tax sources that have been defined as rollover sources. Roth and Deferral sources cannot access the Include in Hardship (Non 401(k)) field because these source types are automatically included in the hardship calculation. Enhancement In response to input from clients, this release makes the Include in Hardship setting available to all sources and drops the (Non 401(k)) from the option name. Roth and Deferral sources are no longer automatically included in the hardship calculation, allowing the source setting to dictate which sources to include in hardship calculation. For Existing Plans/Sources With this enhancement, existing plans/sources will automatically be set as shown below: Source Type Deferral Sources (source types ) Roth Sources (source setting) Automatic Hardship Setting YES YES For New Plans/Sources Going forward, new plan/sources will default to NO for all source types. Make sure you set the appropriate Include in Hardship option for new sources. We recommend the following settings: Source Type Default Recommended Hardship Setting Deferral Sources (source types ) NO YES Roth Sources (source setting) NO YES Rollover Sources (source setting) NO NO Note: There will be no change to default settings for current and new non-401(k) sources. February - December 2013 Schwab Retirement Technologies Page 101 of 126

102 Integration with Klein Decisions K 4 Plan Goals (ASP Only) Pilot Testing in Progress Schwab RT is currently conducting pilot testing of the new Klein Decisions K 4 Plan Goals feature with several clients. After the pilot is completed successfully, we will advise you when all clients may begin using the new features. Project Summary Schwab RT is partnering with Klein Decisions, Inc.* to provide integrated, interactive guidance and advice options that help plan participants see how well their retirement account is performing, and take action to improve it. Klein Decisions K 4 Plan Goals offers each participant a personalized report which includes a suggested strategy for the best combination of retirement age, retirement income, savings rate, and asset allocation at the asset class level. * KD Advisors, LLC, a wholly owned subsidiary of Klein Decisions, Inc., is an internet-only advisory firm. Using K 4 Plan Goals, we help plan participants develop a complete strategy to reach their retirement goals. What s New This release includes the following enhancements: Retirement Progress Home page gadget Deferral Change Report that includes K4 Plan Goals deferrals processed by Schwab RT Monthly Cycle Option for participant data load (Recordkeeping Plan Maintenance) Extract options for plan and participant data load (SchARP workflow parameters) Home Page Gadget Participants can access the Your Retirement Progress gadget on the home page of their retirement account on the web. The gadget shows current and suggested retirement strategies. The date the strategies were calculated is shown at the bottom of the page. A link is provided to the K 4 Plan Goals site where participants can view their full retirement process report and make adjustments to their retirement model. If a participant accepts the suggested strategy, Klein completes the necessary instructions and passes them to Schwab RT. Schwab RT creates corresponding PSR records and processes them, provided nothing prohibits the transactions from processing, and updates the gadget. February - December 2013 Schwab Retirement Technologies Page 102 of 126

103 A sample retirement progress gadget appears below: Note: If the chance of success of the Current Strategy is equal to or greater than the Suggested Strategy, the red text changes to green. Deferral Reports Deferral change instructions received from Klein and processed by Schwab RT Recordkeeping are reported in the Deferral Change Report, which is available through SchARP Generate Reports workflow and Recordkeeping Report Generator (CP50), as well as the reporting menu on Plan Sponsor and Financial Advisor Web sites. A sample report appears below: February - December 2013 Schwab Retirement Technologies Page 103 of 126

104 New Monthly Cycle Option In Plan Maintenance>Other Plan Features, the Advice Options tab contains a new Monthly option under Participant Data Load Cycle. February - December 2013 Schwab Retirement Technologies Page 104 of 126

105 SchARP Workflow This release includes new workflow parameters for the following Klein Decisions data extract business activities in SchARP: Klein Decisions Participant Data Klein Decisions Plan Data The new workflow parameters, defined below, are identical for both data extract business activities: Extract when plan data changes Extracts data for plans (Active for Klein) that have changed in the Recordkeeping system. Any active Klein plan that is subsequently deactivated will be extracted one last time to let Klein know that the plan was deactivated. Note: The Active option required to enable Klein Decisions is located in Plan Maintenance>Other Plan Features>Advice Options. Extract on Demand Extracts any plan selected in the plan selection list below. The list of plans in the box shown below will only have plans that are Active for Klein. A listing of plans extracted by the business activity is provided in the Output column of the SchARP Monitor. User Guide A separate Klein Decision K 4 Plan Goals User Guide is available on the Resource Center at schwabrt.com. February - December 2013 Schwab Retirement Technologies Page 105 of 126

106 Enhanced Employee Census Report for Sponsors and Advisors Summary A new enhanced version of the Employee Census Report is now available for use by your Plan Sponsors and Financial Advisors. The new report allows Sponsors and Advisors to select from a list of data elements to include on the report, based on their assigned roles. Data elements from the existing Employee Census report and the Custom Report Generator (CP20) in recordkeeping are available for use in the enhanced census report. If you choose not to use the enhanced version of the Employee Census report, the existing standard version of the report will continue to be available for use. For plans that use Compensation Hours and Tracking (CHT), the listing of data elements will automatically include Gross Compensation and Testing Compensation formulas. Only CHT salary fields will be displayed and used in the report. For plans that do NOT use Compensation Hours and Tracking (CHT), the list of data elements will include access to all 15 salary fields. If a plan uses salary fields, only the designated salary fields will be displayed and used in the report. The user will also be able to insert blank Revised columns into the report, allowing the subsequent input of replacement values directly into the Excel file. All census data is reported based on the As Of Date for total balance, vested balance, and contributions. User Experience Plan Sponsor and Financial Advisors who have been given access to the enhanced Employee Census Report will see the following sequence of web pages. After logging on to the home page and selecting the Employee Census Report Enhanced option from the menu, the user can select the appropriate plans and modify the date range which defaults to last completed calendar year. The first date of the date range must be the first day of a calendar month. The End Date determines what data is included in the report (PPF records must be accurate). The user can use the other tabs to filter data by division, alt keys, group codes and status codes. Just below the report parameters, a message shows the default data columns that will automatically appear on the report if you generate the report now. February - December 2013 Schwab Retirement Technologies Page 106 of 126

107 User Experience (cont.) The base report, with no extra columns added, appears when you click Generate, as shown below: Base Report February - December 2013 Schwab Retirement Technologies Page 107 of 126

108 User Experience (cont.) If you wish to add more data columns to the report, click Add Columns. The following page appears, allowing you to select from the list of available data elements at the left and add them to the report on the right. When you click an item in the list at the left, a definition of that element appears at the bottom of the page. After adding/removing the appropriate columns from the Employee Census report, click OK to generate the enhanced report. Note that the additional columns selected for the report are shown just above the Add Columns button. The user can also insert Revised columns with no data populated into the report, allowing users to input revised values directly into the Excel file. February - December 2013 Schwab Retirement Technologies Page 108 of 126

109 User Experience (cont.) The enhanced report, with the new data columns, appears below: Enhanced Report Report Output Options The user has the ability to select PDF or Excel as the preferred report output format. If the report contains more than 15 data columns and the user selects the PDF output option, the following default content appears at the top of the page: If you select more than 15 data elements for your report, use the Excel file option as your output option. If you select 15 or more columns, the print may be compressed and may not print in a readable format. A similar pop-up message automatically appears when the PDF option is selected for a report with 15 or more columns. February - December 2013 Schwab Retirement Technologies Page 109 of 126

110 Enabling the Enhanced Report A new report option in Schwab RT Administration allows Recordkeepers to choose which version of the Employee Census report to enable for selected Plan Sponsors and Financial Advisors. The report option applies to all plans assigned to that sponsor or advisor. To enable the enhanced version of the Employee Census report, do the following: From the Security menu in Schwab RT Administration, select Plan Sponsor Options or Financial Advisor Options. Load the appropriate Sponsor(s) or Advisor(s). Under the Reports section, select Enable Employee Census Report Enhanced (allows display of custom census fields), as shown below: Note: To use the standard version of the report, select Enable Employee Census Report, which is the default version. The two Employee Census report options are mutually exclusive. Customizing Page Content You can customize the content of the enhanced census report page using the EMPLOYEE CENSUS REPORT (ENHANCED) option for the Plan Sponsor role in Content Manager (Schwab RT Administration). February - December 2013 Schwab Retirement Technologies Page 110 of 126

111 Adding the Menu Option To add the enhanced census report to the sponsor or advisor web menu, use the predefined element Employee Census Report (Enhanced) in Menu Manager (Schwab RT Administration). Contribution Source Data The following contribution source data elements are available for selection in the enhanced census report: Note: Data is aggregated by tax type across sources, not by source number. 401k (tax types) Roth (source indicator) Match (tax types) Note: Includes both Safe Harbor Match (Match) Safe Harbor Non Elective (ER PS) Employer/Profit Share (tax types) After Tax (tax types) Rollover (source indicator) Plan Templates In a future release, plan level templates will be available that will allow you to restrict the data elements that are available to the sponsor or advisor. February - December 2013 Schwab Retirement Technologies Page 111 of 126

112 Retirement of Schwab 401(k) Tools Summary Effective immediately, the Advice and Planning option Schwab 401(k) Tools is no longer available for use in Schwab RT Web. All related options will be removed from the Schwab RT Administration application. Action Required If your site currently uses the Schwab 401(k) Tools option, please remove the option from the menu. February - December 2013 Schwab Retirement Technologies Page 112 of 126

113 Loan Administration Enhancements Pilot Testing in Progress Schwab RT is currently conducting pilot testing of the new loan enhancements with several clients. After the pilot is completed successfully, we will advise you when all clients may begin using the new features. To participant in the pilot, please contact Client Services. What s New This phase of Loan Administration includes the following enhancements: System and plan settings for Residential and Hardship loans types. User security roles to control user permissions for the Loans Dashboard. Search Criteria page for Loan Dashboard Option to upload multiple loan documents using the Loan Dashboard Ability to request Residential loans from the participant Web Note: The ability to request Hardship loans on the participant Web will be available in a future release. New Loan Types: SYSTEM Settings The Loan Parameters window in System Maintenance is enhanced with separate fields to designate the locations of the following reports: General Loan Application (LoanApplication.rpt) Residential Loan Application (LoanApplicationres.rpt) Hardship Loan Application (LoanApplicationhrdshp.rpt) February - December 2013 Schwab Retirement Technologies Page 113 of 126

114 New Loan Types: SYSTEM Settings (cont.) The Loan Application window is enhanced to allow you to view, modify, and suppress the content of the loan application and cover letter for each loan type: Residential, Hardship, and General. February - December 2013 Schwab Retirement Technologies Page 114 of 126

115 New Loan Types: PLAN Settings On the VRS/OPI window in Plan Maintenance, under Paperless Settings, you can now designate the locations of the General, Residential, and Hardship application reports at the plan level, overriding the system-level options. In addition, options to require plan-level approval for each type of loan are available on this page. February - December 2013 Schwab Retirement Technologies Page 115 of 126

116 New Loan Types: PLAN Settings (cont.) On the Loan Application tab, the plan-level settings include the ability to view, modify, and suppress the content of the loan application and cover letter for each loan type, overriding the system-level settings. February - December 2013 Schwab Retirement Technologies Page 116 of 126

117 New Loan Types: PLAN Settings (cont.) The VRS/OPI Setup Options page, shown below, has new settings for Residential (45) and Hardship (46) loans. Option 43, is renamed to Paperless Loans General. These three options are used to enable the corresponding loan type for the Voice, Call Center, and Web systems. All three options default to NO. Notes: You can select option 46 (Hardship) but this option will not be available to participant on the Web until a future release. Paperless Residential and Hardship loans are not available via Schwab RT Call Center or Voice applications. February - December 2013 Schwab Retirement Technologies Page 117 of 126

118 Dashboard Roles Access to the Loans Dashboard is based on the following SchARP user roles, defined in Schwab RT Administration Security: LoanDashboardApprover Ability to approve or reject loans which require approval, upload documents, and hide documents for participants only. LoanDashboardReviewer View-only access to Loan Dashboard. LoanDashboardUpdater Ability to upload or hide documentation for both participant and Plan Sponsor/TPA. Note: The ability to edit loan data via the dashboard will be available in a future release. LoanPlanSponsorReviewer If this role is selected, the Loan Dashboard will enforce the plan/participant access privileges for the Plan Sponsor role instead of the SchARP role in Schwab RT Administration Security. This added level of security supports the TPA s ability to restrict access to participant by Division, SSN, Alt Key 1, Alt key 2, and Group Code. If this role is not selected, the Loan Dashboard will enforce the plan access defined for the SchARP role, giving the user access to view all participants within the plan. February - December 2013 Schwab Retirement Technologies Page 118 of 126

119 Dashboard: Search Criteria The Loan Dashboard is enhanced with a Search Criteria page that you can use to filter the display of loan information by plan and current status. From left to right, the initial display shows a list of plans associated with the user s permissions, a list of each status that requires attention, and a pie chart. The number of loans associated with each status for the selected plan or plans is also indicated. Only the statuses that are checked will be included in the display of loan data when you click Search. To view or choose additional loan statues, click the Informational header, shown below. This section of the page shows all loan statuses that do not require action. Click to include any of these statuses in your search. When all criteria have been selected, click Search. February - December 2013 Schwab Retirement Technologies Page 119 of 126

120 Dashboard: Search Criteria (cont.) The search results are displayed on the dashboard, based on the selected plan(s) and status(es). Note that the Search Criteria page automatically collapses when you conduct a search, allowing unobstructed view of the dashboard. To access the Search Criteria page, click Expand Search Criteria. The Search Criteria page will drop down over the top section of the dashboard, allowing you to modify the criteria and search again, as demonstrated below. To manually remove the Search Criteria page, click Collapse Search Criteria. These options allow you to access the Search Criteria and search results pages without switching between separate pages. February - December 2013 Schwab Retirement Technologies Page 120 of 126

121 Dashboard: Search Criteria (cont.) If you want to save your current search criteria, click Save Criteria. The next time you log on the Search Criteria page will default to your current selections. If you don t save your current criteria, default criteria are applied. The option Always Show Search Criteria determines whether or not to display the Search Criteria page on future visits. When selected, the user will see the dashboard with the last saved search criteria. New Document Upload Option The Documents tab on the loan details window now allows you to upload multiple loan documents. For auditing purposes, once a document is uploaded, it cannot be deleted from the dashboard. Instead, users with the Loan Dashboard Updater or Approver role can hide documents from view as described below: Loan Dashboard Updater and Loan Dashboard Approver can hide corresponding loan document links from the Model/Request Loan pages on the participant web and on the Loan Dashboard for users with the Loan Dashboard Reviewer role. Loan Dashboard Updater can hide the corresponding loan document row, including the Hide Options, from users with the Loan Dashboard Reviewer and Approver role. Note: The ability to access these documents over the participant web site will be available in a future release. February - December 2013 Schwab Retirement Technologies Page 121 of 126