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.
The Principal Financial Group
Uniglobal Pension Planning, Inc. (“Uniglobal”) may participate in a program established by The Principal Financial Group for Third Party Administrators (“TPA’s”) which reflects the relationship Uniglobal has with The Principal Financial Group in providing services to our clients and their plans. This program is called The Principal TPA Edge Compensation Program. This participation enables Uniglobal to provide The Principal Financial Group with input regarding its products and services and in return for The Principal Financial Group to provide Uniglobal with detailed information about their products and related services. Uniglobal may receive payments from The Principal Financial Group which are intended to assist Uniglobal in the development, implementation, and on-going administration of The Principal Financial Group contracts.
The Principal TPA Edge Compensation Program includes two components – Installation Expense Allowance and Asset-Based Compensation.
Installation Expense Allowance
Compensation is calculated and paid monthly. The IEA may be used towards services associated with starting a new retirement plan program or converting and/or modifying an existing retirement plan program. For Startup plans, contributions and rollovers received during the period ending 90 days after the Service and Expense Agreement effective date. For transferring plans, the payment amount is based on the actual transfer funds and rollovers received during the period ending 90 days after the Service and Expense Agreement effective date. For Defined Benefit plans, contributions on startup plans or transfer assets on transitioning plans must be received during the period ending 90 days after the Service and Expense Agreement effective date. Allowance is not paid on individual 401(k) plans covering 1 owner and spouse with no other employees.
*Effective 01/01/2020, IEA payments are the greater of $600 or 25bps. IEA payments for Startup plans are based on contributions & rollovers. IEA payments for Transfer plans are based on transfer funds & rollovers. IEA payments are capped for each retirement plan at $12,500
Installation Expense Allowance chart through 12/31/2020
|
Plan assets (Defined Contribution unless otherwise noted) |
Installation Expense Allowance |
| Defined Benefit – Startup & Transferring | $1,000 |
| Defined Contribution – Startup Plan | $300 |
| Up to $500,000 | $600* |
| $500,000 to $1 million | $1,250* |
| $1 million to $2 million | $2,000* |
| $2 million to $2.5 million | $2,500* |
| $2.5 million to $3 million | $5,000* |
| $3 million to $3.5 million | $6,500* |
| More than $3.5 million | $7,500* |
Installation Expense Allowance chart effective 01/01/2021
|
Plan assets (Defined Contribution unless otherwise noted) |
Installation Expense Allowance |
| Defined Benefit – Startup & Transferring | $1,000 |
| Defined Contribution – Startup Plan | $300 |
| Startup plans - contributions & rollovers | $600 or 25bps (greater)** |
| Transfer plans - transfer funds & rollovers | $600 or 25bps (greater)** |
**IEA payments are capped for each retirement plan at $12,500.
Asset-Based Compensation for performance of plan services1
Uniglobal is also paid for the services it delivers on an ongoing basis in the amount of 5 basis points (bps) per year in annual compensation. To qualify, Uniglobal must maintain at least $10 million in plan assets every quarter.2 The compensation Uniglobal receive is based on all new and existing eligible assets — not just those above $10 million. The compensation Uniglobal receives is calculated and paid each quarter. Plans sponsored for the benefit of employees of a TPA firm participating in the Principal TPA Edge Compensation Program are excluded. These payments are separate from commission payments and are made from the general assets of The Principal Financial Group, not from the assets of your plan.
Other payment options
The Principal Financial Group may make available to Uniglobal methods to collect service fees other than directly from plan sponsors; The Principal Financial Group may make available additional service fee payment options — including options to pay fees on a short-term or ongoing basis. Automatic payments for service fees may be available. The amount of these payments is based on the assets in The Principal Financial Group contracts held by all plans for which Uniglobal provides services, and may be increased as a result of the assets in your plan that are invested with The Principal Financial Group. However, your plan is not charged for these payments. The pro-rated portion of these payments, if any, will be reported on the annual Form 5500 filing.
Uniglobal may use these payments to offset the plan’s annual administrative charges. If The Principal Financial Group does not provide a sufficient payment to Uniglobal to cover your plan’s administrative costs, your administrative fees may be adjusted and billed to you accordingly.
In the event that Uniglobal is not provided payment through Revenue Sharing, The Principal Financial Group may, at the direction of the Plan Sponsor and under a separate agreement with the Plan and The Principal Financial Group, establish an ERISA Budget to collect revenue sharing from investments. The Plan Sponsor would be able to direct The Principal Financial Group to pay qualifying plan related expenses directly to Uniglobal from the ERISA Budget. The ERISA Budget could capture any amount for this purpose – recapture accounts like this one experience a range of amounts from 0 to 15 basis points or more.
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.
1 TPA must have a signed Principal TPA Edge Agreement and TPA Installation Expense Allowance Agreement, and the terms of these agreements will govern what payments, if any, will be made to the TPA firm.
2 “Assets” include amounts held with respect to group annuity contracts issued by Principal Life and amounts held in certain investment options available to clients with services provided by the Principal Financial Group®. Assets will not include loan balances, general securities through a brokerage account and employer securities. If this amount of assets drops below the qualification level in any quarter, then no TPA compensation is earned or payable for that quarter.
Compensation is capped for each retirement plan at $6,250 per calendar quarter.