Schwab Retirement Technologies, Inc. Schwab RT User Guide
Schwab RT Web August, 2018 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. For further information, contact Schwab Retirement Technologies, Inc. at 4529 Sharon Road, Charlotte, NC 28211, USA. Web site: schwabrt.com. 2018. Schwab Retirement Technologies, Inc. All rights reserved.
Table of Contents Overview... 4 Defining Advice Settings for the Plan... 5 Excluding Investments from Morningstar Advice Realignments... 10 Source Level Options... 10 Investment Level Options... 12 Running the Batch Export... 13 Tracking Morningstar Participant Activity... 14
Overview Schwab RT has established data feeds to enable transfer of plan details from its recordkeeping system to Morningstar Retirement Manager and Envestnet. Note: At this time, integration to enable the transfer of participant information is not available through Schwab RT. Use the following procedure to configure the Plan Maintenance Advice Options and generate the plan exract using Vendor Batch Export/C192. Prerequisites: Prior to configuring the Morningstar feature, you must complete the required contract agreement with Morningstar and request coordination assistance from Schwab RT. In order to communicate with Morningstar, your Recordkeeping data must be properly mapped to Morningstar's data elements. Application Window/Page Task Schwab RT Recordkeeping Plan Maintenance/C001 > Other Plan Features Plan Maintenance/C001 > Source Level Options/ Investment Level Options Vendor Batch Export/C192 Define the settings on the Advice tab. Set option to Allow Advice Realignments Select plans, enter the location of the export file, and click Process. August 2018 Schwab Retirement Technologies Page 4 of 14
Defining Advice Settings for the Plan This section identifies plan settings in Schwab RT Recordkeeping that are used to configure the Morningstar and Envestnet export functions. The Vendor Batch Export/C192 application extracts XML plan data from fields defined on the Advice Options tab, located on the Other Plans Features window in Plan Maintenance/C001. When a plan is to be closed to Morningstar access, the Status should be changed to Pending Closed. The plan batch extract will send it one time to Morningstar and then set the status to Closed. No Closed plans are extracted. The status must be manually changed in Plan Maintenance before it can be extracted again. For details on Klein Decisions, refer to the following documents, available from the schwabrt.com Resource Center: Klein Decisions User Guide Klein Decisions FAQ & Tutorials (ZIP file) August 2018 Schwab Retirement Technologies Page 5 of 14
Field Definitions The fields on the Advice Options tab are described below: Client ID Advice Vendor Service Options Program Fees Enable Stock on Advice Enable Auto Enroll Electronic Catch Up Elections Alpha-numeric ID (4 characters maximum) that is assigned by the vendor and passed to the vendor in the batch export. This field is required for the Vendor Batch Export/C192. The Client ID is required for the plan to be available in Vendor Batch Export/C192. Select Morningstar or Envestnet. These options represent modules that can be purchased from Morningstar. Select one or more of the following options: QualMRP Online Advice Online Call Center Proposal Online Guidance Portfolio Models The QualMRP and Portfolio Models service options cannot be selected at the same time. The following fields are enabled only when either the QualMRP or Portfolio Models Service Option is selected: Asset Minimum/Maximum (Default = 0) Basis Points (Default = 0) Caution: If you leave the Asset Maximum field blank, there will be no maximum value applied by the system. Select this option to allow Batch Export to provide advice on stock funds. The check box is clear by default. Unless this option is selected, data relating to company stock will be ignored by the Batch Export application. This option is extracted as COMPANYSTOCK STOCKFLAG with Y or N values. Note: The Batch Extract handles unitized or Real Equity investments as stock investments. Select this option if the plan allows participants to be automatically enrolled in Morningstar Managed Accounts. This option is enabled only when the QualMRP Service Option is selected (Default = OFF). Refer to Morningstar for more information on how this setting may impact your service. This setting is view only and cannot be maintained through Plan Maintenance. See Impact of Catch Up Field Settings" below. August 2018 Schwab Retirement Technologies Page 6 of 14
Impact of Catch Up Field Settings The following table shows how the options Allow Catch Up Deferrals (Plan Maint. > Compliance) and Electronic Catch Up Elections (Plan Maint. > Other Plan Features > Advice Options) impact the Enable50yrCatchup field in the Morningstar Plan Batch XML file. IF Allow Catch Up Deferrals = False Allow Catch Up Deferrals = True AND Electronic Catch Up Elections = False Allow Catch Up Deferrals = True AND Electronic Catch Up Elections = False THEN Enable50yrCatchup = False Enable50yrCatchup = False Enable50yrCatchup = True Portfolio Models When Portfolio Models is selected, the following fields are enabled: Rebalance Frequency Available options: 100 Monthly 101 Quarterly 105 Semi-Annually 106 Annually Model Type Available options: 1 Risk3 2 Risk4 3 Risk5 4 Time5 5 Time10 6 Hybrid310 In Retirement Does the plan support Morningstar's in retirement de-accumulation functionality for users whose date of birth is greater than 50? Available options: 0 Not Available (Default) 1 Available Refer to Morningstar for more information on how this setting may impact your service. August 2018 Schwab Retirement Technologies Page 7 of 14
Transaction Type Plan Type Non Advisable Plan Type Status Select one of the following options: 0 No Transaction (Default setting. No transactions are sent back to the plan.) 1 Direct Transaction (Transactions are sent directly back to the plan to be implemented on the back end.) 3 Re-direct the transaction (The system sends the transaction back to the plan and it is posted to a page on the pan s Web site. Participants can then implement transactions from the Web page. This field is extracted as TRANSACTIONTYPE. Select one of the following options: 01 : 401(K) 02 : Thrift 03 : Profit Sharing 04 : Money Purchase 05 : 403(B) 06 : Sup 403(B) 07 : 457(B) 08 : 401(A) 09 : Non Qualified 10 : Simple IRA 11 : Sep IRA 12 : Traditional IRA 13 : Roth IRA 14 : Rollover IRA 15 : Non Qualified VA 16 : Taft Hartley 17 : Non Advisable Enabled only if Morningstar Plan Type is 17: Non Advisable, disabled otherwise. If enabled, select one of the following options: 31 : ESOP 32 : Profit Sharing 33 : Money Purchase 34 : Non Qualified Select one of the following options: Open Pending Closed Closed The Status must be Open or Pending Closed for the plan to be available in Batch Export. August 2018 Schwab Retirement Technologies Page 8 of 14
Klein Decisions The following settings are used to enable and define the integration with Klein Decisions: Active Select the this option to enable Klein Decisions functionality for the plan. Advice Allowed Select this option if you want to permit Klein to provide advice to the plan s participants. Bulk Ship If you outsource participant Retirement Progress reports for printing, select this option if you want to ship all documents to the return address that appears on the reports, instead of sending reports directly to participants. enotify Participants when Gadget is Updated Select this option to notify participants by email when their Your Retirement Progress gadget is updated with Klein Decisions suggested strategy. For information on using edelivery options, refer to the Schwab RT edelivery Notifications and Confirms User Guide. Participant Data Load Cycle Select the appropriate cycle (Annual, Semi-Annual, Quarterly, or Monthly) for extracting participant data. Participant Data Extract Date Select the date the participant data is extracted. Example: Month 3 Day15 = Extract participant data 15th day of March, June, September, and December. Note: To display underlying funds in an IPM on Klein Decisions Retirement Progress reports, select the following option on the Investment Controls window in Plan Maintenance: Klein Decisions Settings/Display IPM Underlying Funds. Activity tracking is performed for the following fields: Field Name Advice Vendor 2079 Morningstar Plan Type 1562 Non Advisable Plan Type 1563 Morningstar Status 1564 Tracking Code Note: For a new plan created through Create a New Plan option, the Advice Vendor option will default to Morningstar. This will be corrected in a future release. August 2018 Schwab Retirement Technologies Page 9 of 14
Excluding Investments from Morningstar Advice Realignments In Plan Maintenance/C001, VSR/OPI logic automatically includes investments in Morningstar Advice realignment transactions. If an investment is not included, it is treated as frozen fund and will not be included in any rebalance transactions that result from a Morningstar Advice interaction. To allow you to exclude investments from Morningstar Advice realignments, an option, Allow Advice Realignments, is provided at both the source and investment level. This option is turned on by default and must be turned off to exclude investments from Morningstar realignments. Source Level Options The source level Allow Advice Realignments option is located on the Select Sources window as well as the VRS/OPI Controls (Source) window. The option is selected by default. The Select Sources window appears below. August 2018 Schwab Retirement Technologies Page 10 of 14
The VRS/OPI Controls (Source) window appears below. August 2018 Schwab Retirement Technologies Page 11 of 14
Investment Level Options The Investment level Allow Advice Realignment option is located on the Select Investments window and on the VRS/OPI Controls (Investment) window. The option is selected by default. The Select Investments window appears below. The VRS/OPI Controls (Investment) window appears below. August 2018 Schwab Retirement Technologies Page 12 of 14
Running the Batch Export You can use the Batch Export window to select the Morningstar or Envestnet plan or plans to be exported and to define the location of the export file. To process the file, select Process from the Options menu. The default is Morningstar. Only Morningstar plans with the Morningstar Status of Open or Pending Closed are available for selection. If the Advice Vendor is Envestnet, the default export file name will be ERS1PlanData.xml. If the Advice Vendor is Morningstar, the default export file name will continue to be ClientID_plan_YYYYMMDD. The Select Plan(s) list varies for each Advice Vendor, corresponding to the Plan Advice Vendor set in Plan Maintenance. The runtime Advice Vendor is the same as the Plan Advice Vendor. The XML file will display the Client ID based on the first plan with an Open status in the database for the same Vendor as the one selected at runtime. Field Definitions The fields on the Batch Export window are described below: Advice Vendor Select Plans Export File Name (not shown above) Select Morningstar or Envestnet. Under Select Plans, choose the plan(s) to include in the export. You can select a single plan, multiple plans, or all plans. Only Morningstar plans with the Morningstar Status of Open or Pending Closed are available for selection. The following plans are not available for selection: Plans with a Morningstar Status of Closed. Plans which do not have Morningstar Plan Type defined. Non Advisable plan types. Enter the location to which the PlanData.xml file is to be saved. Controlled by DOCPATH setting. August 2018 Schwab Retirement Technologies Page 13 of 14
Tracking Morningstar Participant Activity You can use the Participant Advice window in Participant Maintenance/C004 to view the current status and past history of a specific individual s participation in various Morningstar services. These options are also available in Participant Inquiry. Note: The participant Status is not currently supported by Schwab RT. This functionality will be provided in a future release. Field Definitions The fields on the Participant Advice window are described below: Status Begin Date/ End Date Participant Directed Identifies the Morningstar service option that is active for the corresponding date range. The first entry represents the current status, followed by past activity. If the participant opts out of the service, the status changes to Opted Out. The status Morningstar Managed Accounts is available only when the QualMRP Service Option is selected in Plan Maintenance. The status Morningstar Advice is available only when the Online Advice Service Option is selected in Plan Maintenance. The time period (date and timestamp) associated with the current or past Status. Indicates whether the current status was the result of action taken by the participant (True) or by changes in plan administration (False). Notes: If no Morningstar records exist for the participant, only the column headers will display on Participant Advice window. If you change a plan s service option from Morningstar Managed Accounts to Morningstar Advice, the system will display a message that indicates the number of participants currently enrolled in the service who will be opted out and ask you if you wish to continue. If you choose to continue, the system will log all participants out of Managed Accounts and stamp it with the current system date (not the plan date). August 2018 Schwab Retirement Technologies Page 14 of 14