Press Release - December 18, 2006
Contact Information:
Ann Marie Mierzykowski
Boston Financial Data Services, Inc.
617-483-2371
Boston Financial Eases Year-End Compliance Testing for Plan Sponsors
Web solution enables sponsors to collect and validate participant census information in real time
QUINCY, MASS., December 18, 2006-Plan sponsors can now streamline their annual census
data collection and validation process thanks to a new Web-enabled service offered by
Boston Financial Data Services. The solution will make it easier for plan sponsors to meet
IRS compliance testing deadlines for the 2006 calendar year and beyond.
Census data collection is a significant annual event for most plan sponsors. Every
year, they must collect comprehensive participant data from their human resources and
payroll systems and often complete a compliance questionnaire from their plan provider.
The provider then performs required IRS compliance testing to ensure the plan is
operating in accordance with regulations. The task of reconciling discrepancies between a
plan sponsor's information and the information held by the provider is time consuming and
often causes delays in the testing process. Plan sponsors must correct failed compliance
tests by March 15 (for calendar year plans) in order to avoid tax-related penalties.
Now, through a private-labeled Web site hosted by the plan provider and serviced by
Boston Financial, plan sponsors can review their annual census information and promptly
detect-and commence correction of-any potential discrepancies. This preliminary
validation can avoid many of the delays often encountered during compliance testing.
The Web-based tool was developed by Boston Financial's technology partner, DST
Systems, Inc., and provides real-time access to plan provider information housed on
DST's retirement recordkeeping platform, TRAC®.
"As a service organization, we focus on operational innovation to improve processes
for our clients and their plan sponsors," explained Bob Regan, division vice president,
Boston Financial. "With this technology, as soon as a plan sponsor completes the online
annual compliance questionnaire, we can begin compliance testing. It streamlines the
entire census validation and compliance testing process."
###
About Boston Financial Data Services, Inc.
Boston Financial Data Services is one of the industry's premier outsourcing providers
committed to servicing the retirement plan business and a leader in the mutual funds
marketplace. Boston Financial is a joint venture established in 1973 between DST
Systems, Inc. of Kansas City, Mo., and State Street Corporation of Boston, Mass.
This joint venture has enabled Boston Financial's clients to utilize DST's industry-
leading software and technology while benefiting from the institutional support and
global reach of State Street.
|