REQUIRED 408(b)(2) FEE DISCLOSURE
This Fee Disclosure (or “Compensation Disclosure”) incorporates by reference Terms and Service Order between Client, Plan, and Uniglobal, including any schedule, addendum, appendix, and/or amendment.
John Hancock TPA Program Installation Allowance Payments
Uniglobal Pension Planning, Inc. (Uniglobal) may receive Installation Allowance (“IA”) payments under the John Hancock TPA program (Program). IA payments are made for Uniglobal’s installation services and for certain other functions provided by Uniglobal to the Plan, including but not limited to:
- Reconciliation of assets on conversion plans;
- Reconciliation of loans on conversion plans;
- Coordinating data for set-up of new and conversion plans; and
- Setting up administrative systems for new and conversion plans.
Uniglobal does not have sufficient information to disclose, in advance, whether it will receive IA compensation in a particular year, and if so, how much IA compensation it will receive, because whether and to what extent Uniglobal is eligible for IA payments depends upon, among other things, the number of Uniglobal’s clients that enter into new John Hancock group annuity contracts in a particular year. Assuming Uniglobal meets the eligibility requirements for TPA Program members to receive IA payments, the amount of those payments would be calculated based upon a formula set by John Hancock. The amount of any IA payment received by Uniglobal will be disclosed on a schedule to the Form 5500 for that Plan year if required.
Eligibility: Uniglobal, having plan clients that enter into new John Hancock group annuity contracts (i.e., contracts that are effective on or after January 1, 2015), is eligible to receive IA compensation, provided that Uniglobal has completed a John Hancock Program application that has been approved by John Hancock
Payment: The amount of IA compensation paid to Uniglobal is calculated monthly at the end of the applicable period. Uniglobal will receive an amount equal to 100 basis points (1%) times the amount of all Recurring Dollars and an amount equal to 20 basis points (0.2%) times the amount of all Transfer Dollars.
“Recurring Dollars” means recurring deposits of a new plan adopting a John Hancock group annuity contract for which Uniglobal provides administrative services during the first 12 months that the plan is funded by the John Hancock group annuity contract and does not include any amounts defined as Transfer Dollars.
“Transfer Dollars” means actual deposits transferred to John Hancock by a new plan (i.e., a plan that enters into a John Hancock group annuity contract) during the calendar year and does not include any amounts defined as Recurring Dollars.
The following are not included in the calculation of IA Payments:
- Any amounts awaiting investment in John Hancock group annuity contracts;
- Internal transfers within John Hancock group annuity contracts;
- Monies in a plan for which Uniglobal is a fiduciary (e.g., the retirement plan for Uniglobal);
- Amounts invested in Personal Brokerage Accounts; or
- Earnings on investments within John Hancock group annuity contracts.
Uniglobal expects to receive IA payments on a monthly basis. In cases involving new plans with $5 million or more in assets, Uniglobal may elect to have the IA payment made over 1, 3 or 5 years. Payments made under the 3 or 5 year option will be in equal installments.
Uniglobal uses a modified fee schedule in connection with clients whose plans are funded by John Hancock group annuity contracts. Specifically, the fee schedule used for clients whose plans are funded with John Hancock group annuity contracts reflects fees that are lower in some respects than the fees charged to some other clients of Uniglobal whose plans are not funded by John Hancock group annuity contracts.
John Hancock TPA Program Efficiency Allowance Payments:
Uniglobal may receive Efficiency Allowance (“EA”) payments under the Program.
EA payments are made to Uniglobal for Uniglobal’s Annual Administration services and in exchange for the following additional services:
- Administration and Compliance Service Fees;
- Utilizing staff training sessions to increase efficiencies in connection with the use of John Hancock products;
- Managing existing John Hancock plans for retention;
- Using John Hancock electronic interfaces; and
- Participating in John Hancock TPA Program committees.
Uniglobal does not have sufficient information to disclose, in advance, whether or how much EA compensation that it may receive in a particular year. This is because the total amount of assets invested by the plan in the John Hancock group annuity contract cannot be determined in advance. The amount of EA compensation that Uniglobal may receive is calculated based on all assets held by all plans (1) for which Uniglobal provides services and (2) which are funded by John Hancock group annuity contracts. The amount of any EA payment received by Uniglobal and attributable to the Plan in any given Plan year will be disclosed on a schedule to the Form 5500 for that Plan year if required.
Eligibility: Uniglobal, having plan clients that enter into new John Hancock group annuity contracts (i.e., contracts that are effective on or after January 1, 2015), will be eligible to receive EA compensation in any given calendar year (January 1 – December 31), provided that Uniglobal has completed a John Hancock Program application that has been approved by John Hancock.
Payment And Amount: The amount of EA compensation paid to Uniglobal is calculated monthly at the end of the applicable period. Payment may be made monthly or quarterly. Depending upon whether or not Uniglobal is eligible for EA payments in a calendar year, Uniglobal may receive an amount between 0 and 5 basis points (.05%) times the amount of all assets, collectively, of all new plans (i.e., a plan that enters into a John Hancock group annuity contract on or after January 1, 2015) funded by group annuity contracts issued by John Hancock for which Uniglobal provides services.
The following are not included in the calculation of plan assets for purposes of EA compensation:
- Any amounts awaiting investment in John Hancock group annuity contracts;
- Monies in a plan for which Uniglobal is a fiduciary (e.g., the retirement plan for Uniglobal); or
- Amounts invested in Personal Brokerage Accounts.
Uniglobal expects to receive EA payments on a monthly basis.
John Hancock Efficiency Allowance Compensation
Uniglobal may receive Efficiency Allowance (EA) payments with respect to plans for which Uniglobal provides services and which entered into John Hancock group annuity contracts before January 1, 2015 (“pre-2015 plans”).
EA payments for pre-2015 plans are made to Uniglobal for Uniglobal’s Administration and Compliance Services and in exchange for the following additional services:
- Utilizing staff training sessions to increase efficiencies in connection with the use of John Hancock products;
- Managing existing John Hancock plans for retention;
- Using John Hancock electronic interfaces; and
- Participating in John Hancock TPA Program committees.
The amount of any EA payment for a pre-2015 plan received by TPA and attributable to the plan in any given plan year will be disclosed on a schedule to the Form 5500 for that plan year if required.
Eligibility: Uniglobal will be eligible to receive EA payments from John Hancock relative to the plan if certain eligibility requirements are satisfied. Those eligibility requirements are primarily based on the number of plans funded by John Hancock group annuity contracts for which Uniglobal provides administrative services, and the total plan assets for those plans. Any questions with respect to this should be directed to Uniglobal.
Payment And Amount: Uniglobal may receive an amount between 0 and 5 basis points (.05%) times the amount of all assets in the pre-2015 plan during the computation period for which Uniglobal provides services. If actual assets increase or decrease, payments will be adjusted accordingly.
The following are not included in the calculation of plan assets for purposes of EA compensation for a pre-2015 plan:
- Any amounts awaiting investment in John Hancock group annuity contracts;
- Monies in a plan for which Uniglobal is a fiduciary (g., the retirement plan for Uniglobal); or
- Amounts invested in Personal Brokerage Accounts.
Uniglobal expects to receive EA payments for pre-2015 plans on a monthly basis.
TPA Focus Benefits
As a member of the John Hancock TPA Program, Uniglobal may be eligible to receive benefits, valued at up to $20,000 a year under a John Hancock program called TPA Focus. The cost of TPA Focus benefits is not deducted from Plan assets and is paid out of John Hancock’s general assets.
The proportionate amount of any TPA Focus payment received by Uniglobal and applicable to the Plan in any given Plan year will be disclosed on a schedule to the Form 5500 for that Plan year if required.
Eligibility: The eligibility requirements for receipt of TPA Focus benefits are subject to change annually. Eligibility currently depends upon Uniglobal accomplishing certain goals with respect to the number of new plans for which Uniglobal provides administrative services that enter into John Hancock group annuity contracts during the calendar year. Upon request, Uniglobal will provide Client with specific information regarding John Hancock’s eligibility requirements for receipt of TPA Focus benefits then in effect.
Available Benefits: Assuming Uniglobal establishes eligibility for TPA Focus benefits under the eligibility rules then in effect, Uniglobal may receive benefits up to a maximum value of $20,000 (based on values assigned by John Hancock), from the following list of services:
| TPA Focus Service | Value | |
| 1. | SSAE 16 for TPA Firm (paid by John Hancock)[1] | $20,000 |
| 2. | A ‘Business Health’ on-site planning session conducted by an independent business consultant for Uniglobal’s entire firm (paid for by John Hancock) | $10,000 |
| 3. | An on-site review by an independent productivity consultant (paid for by John Hancock) | $10,000 |
| 4. | Services of “other” Consultants (as approved by John Hancock) | Up to $20,000 |
| 5. | Attendance at a presentation skills workshop (paid for by John Hancock) – John Hancock reserves the right to restrict redemption | Up to $20,000 |
| 6. | Expenses related to marketing Uniglobal’s firm (i.e. brochures, website development) | Up to $20,000 |
| 7. | Attendance at industry conferences for Uniglobal and Uniglobal staff and/or costs of educational courses and exams – John Hancock reserves the right to restrict redemption | Up to $20,000 |
| 8. | Membership fees for industry associations | Up to $20,000 |
| 9. | Subscription to industry publications | Up to $20,000 |
| 10. | Other services as approved by John Hancock – John Hancock reserves the right to restrict redemption | Up to $20,000 |
Direct Compensation
Please refer to the Service Order for fees that are considered Direct Compensation such as Administration and Compliance Service Fees, Loan Processing & Origination Fees, Participant Distribution Fees, and QDRO Review Fees. All Direct Compensation paid by the Plan and/or Client is disclosed in Terms, Service Order, and/or any addendum, attachment, schedule, exhibit, appendix, or amendment, as applicable, including this Compensation Disclosure, and together with fee related materials from other parties including Other Service Provider Compensation Disclosures constitute Uniglobal’s compliance with this disclosure law.
Plan Consultant Business Leaders Conference Benefits
As a member of the John Hancock TPA Program, Uniglobal may participate in an annual meeting, sponsored by John Hancock, referred to as the Plan Consultant Business Leaders Conference. Uniglobal’s individual travel, lodging and meal expenses attendant to participating in the Plan Consultant Business Leaders Conference are paid by John Hancock, out of John Hancock’s general assets, and are not deducted from Plan assets. The value of participation in the John Hancock Plan Consultant Business Leaders Conference may range from $5,000 to $10,000, depending on the location of the conference and the applicable budget.
The proportionate amount attributable to the Plan of any amounts paid by John Hancock on behalf of Uniglobal for participation in the Plan Consultant Business Leaders Conference applicable to the Plan will be disclosed on a schedule to the Form 5500 for that Plan year, if required.
Eligibility: The eligibility requirements for receipt of Plan Consultant Business Leaders Conference benefits are subject to change annually. Eligibility currently depends upon Uniglobal accomplishing certain goals with respect to the number of new plans for which Uniglobal provides administrative services that enter into John Hancock group annuity contracts during the calendar year, as well as total assets under management for all of the Uniglobal’s plans under administration with John Hancock. Upon request, Uniglobal will provide Client with specific information regarding John Hancock’s eligibility requirements for receipt of Plan Consultant Business Leaders Conference benefits then in effect.
Available Benefits: Assuming Uniglobal establishes eligibility for Plan Consultant Business Leaders Conference benefits under the eligibility rules then in effect, Uniglobal may receive benefits up to a maximum value of $10,000 (based on values assigned by John Hancock).
[1] An “SSAE 16” is an audit of the internal controls of a service organization, after which a report is prepared detailing the findings of the audit.