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. “Plan Sponsor” means the Client.
Transamerica Retirement Solutions, LLC
In addition to the compensation disclosed by Uniglobal to Client and Plan, Uniglobal may also receive payments from Transamerica Retirement Solutions, LLC (“Transamerica”) for services provided by Uniglobal, as the plan’s TPA, to Transamerica in connection with the Plan. Uniglobal may receive “service fee income” payments from Transamerica. Uniglobal does not have sufficient information to disclose, in advance, the exact amount of service fee income it will receive from Transamerica, if any. However, the amounts received by Uniglobal will be disclosed on the Plan’s Form 5500 for the Plan Year in which such payments are made, if any.
Service Fee Income
Uniglobal may be paid service fee income by Transamerica, which payment is made for services provided both to the Plan, on behalf of Transamerica, as well as for services to Transamerica, which services are completed in connection with the services provided by both TPA and Transamerica to the Plan.
These services include, but are not limited to:
- Reconciliation of assets on takeover plans;
- Reconciliation of loans on takeover plans;
- Coordinating data for set-up of new and takeover plans;
- Setting up administrative systems for new and takeover plans;
- Managing existing Transamerica plans for retention; and
- Using Transamerica electronic interfaces.
Service Fee Income (continued)
Uniglobal may be paid service fee income from Transamerica. Service fee income shall be paid as Asset Based: For each calendar-month, Uniglobal shall be paid an amount equal to 5 basis points (0.05%) of the end-of-calendar–month combined balance of the applicable investment choices under the Plan.
Payments of service fee income received from Transamerica may partially offset compensation to be received by Uniglobal from the Plan Sponsor or the Plan for Uniglobal’s annual administrative services.
Marketing and Premier Service Program
Eligibility for the Transamerica Marketing and Premier Service payments in any year depends on the satisfaction of the certain qualifying criteria by Uniglobal, as determined in Transamerica’s sole discretion.
Payments under the Transamerica Marketing and Premier Service program are based on the following scale. For each new plan for which Uniglobal provides administrative services that enters into an agreement with Transamerica to provide services, Uniglobal may receive a payment based on the following:
In the event that Uniglobal satisfies certain criteria, as determined in Transamerica’s sole discretion, Uniglobal may receive a payment up to: 10 basis points (.10%) on the first Five Million Dollars ($5,000,000) of assets transferred to Transamerica.
Payments made under the Transamerica Marketing and Premier Service program are in consideration of certain marketing, transition, and administrative services provided by Uniglobal to Transamerica in connection with the plan to which such payment relates. Uniglobal’s participation shall be determined in the sole discretion of Transamerica, which decision shall be based on the level of services provided by Uniglobal.
Payments received from Transamerica under the Transamerica Marketing and Premier Service program may partially offset compensation to be received by Uniglobal from the Plan Sponsor or the Plan relative to Uniglobal’s annual administrative services.
TRANSAMERICA’S STANDARD SERVICE-FEE INCOME PROGRAM2
Service-fee income* is potentially one component of our business model; Transamerica may provide its TPA business relationships, such as that with Uniglobal, with a flexible and competitive program with no plan-count qualifications or licensing requirements.
SERVICE-FEE INCOME MAY BE PROVIDED ON ALL PLAN TYPES INCLUDING:
- Single employer plans.
- Multiple employer plans.1
- Taft-Hartley multi-employer plans.
- Davis Bacon plans.
- Defined benefit plans.1
- Cash balance plans.1
PROGRAM DETAILS
Deposit-based service-fee income paid on all first-year assets received (both transfer and deposits) between 10 basis points and 50 basis points in 5 basis-point increments. The first 10 basis points are built in with no impact to pricing for the sponsor or participant.*
Asset-based service-fee income is paid on first-year and beyond contract assets that are allocated each month. Uniglobal may receive between 0 and 50 basis points in 1 basis-point increments, depending on the unique circumstances.
PROGRAM OFFERS
- Immediate eligibility.
- No maximum on payouts.
- No minimum assets under management requirement.
- No annual sales requirement.
- Service-fee income starting from day one, dollar one of the plan.
- Deposit-based income for the plan’s first year transfer and flow.
- Asset-based income for the life of the plan starting with dollar one.
SERVICE FEE INCOME WITH TRANSAMERICA’S FASTTRACK PRODUCT
Transamerica’s FastTrack product leverages a standardized Service Fee Income schedule which includes 5 basis points on assets in all years, an an additional one time payment of $500 upon receipt of the first deposit.
TRANSAMERICA’S TPA ADVANTAGE REWARDS PROGRAM2
This program may provide Uniglobal with unique marketing and sales support, access to industry leaders and experts, financial advisor outreach solutions, and client management solutions.
There are three levels of membership; Elite, VIP and Preferred. These levels are met if a certain asset and plan count are achieved in a given year.
ELITE AND VIP MEMBERS
Elite and VIP members are given credits that may be used to obtain premium services up to a capped credit limit. If you’d like a particular premium service and don’t have enough credits, you may pay out-of-pocket for certain premium services at preferred prices.
PREFERRED MEMBERS
Preferred members aren’t provided with credit allotments and are able to purchase, at an exclusive and preferred price, a selection of premium services for which you qualify.
MEMBER QUALIFICATION (BASED ON PLANS SOLD IN PRIOR CALENDAR YEAR (“PCY”))
PREFERRED: 5+ plans in PCY
VIP: $12M in assets and 10 plans, $60M in assets and 3 plans, or 25 plans in PCY
ELITE: $15M in assets and 12 plans, $75M in assets and 4 plans, or 40 plans in PCY
TRANSAMERICA’S TPA PARTNERSHIP REFERRAL PROGRAM3
Monetary and service-based benefits may be provided to Uniglobal if business is referred to Transamerica through a financial advisor, certified public accountant, plan prospect, or other source.
When you refer an opportunity that leads to the sale of a plan, Transamerica will pay deposit-based revenue on new transferred assets for services provided in connection with new plans proposed, sold, and submitted between January 1 and December 31 of the PCY.
Tier 1
Requirements: 1-3 plans; $0 in required New Transferred Assets
Payout Scale: Standard Service Fee Income program will apply (minimum 10bps on first year deposits).
Additional Incentives: None
Tier 2
Requirements: 4-11 plans; $0 in required New Transferred Assets
Payout Scale: 5bps on first $5M in addition to Standard Service Fee Income program payment.
Additional Incentives: None
Tier 3
Requirements: 12+ plans; $15M in required New Transferred Assets
Payout Scale: 10bps on first $5M in addition to Standard Service Fee Income program payment.
Additional Incentives: Dedication in NBI; Dedication to TPAConnect; In-office staff training; Two events with broker-dealers; Two events with strategic broker-dealers; One sponsored marketing meeting with audience of firm choice.
Should Uniglobal hit Tier 2 or 3, Transamerica will pay the difference back to dollar one for plans sold in the calendar year. Plan paperwork must be signed and submitted to Transamerica by December 31 with assets transferring by March 31.
TPA Meeting Benefits
If membership in the Transamerica Marketing and Premier Service program is awarded, Uniglobal may participate in an annual meeting sponsored by Transamerica. The travel, lodging, and meal expenses attendant to participating in Uniglobal Meeting may be paid by Transamerica. These payments, if any, are paid out of Transamerica’s general assets, and are not deducted from Plan assets. It is anticipated that such non-monetary compensation received in connection with such annual meeting that are allocable to a specific plan will be of insubstantial value and, therefore, exempt from reporting. To the extent, however, that any non-monetary compensation is determined, under a reasonable method of allocation, to be attributable to the Plan and not otherwise exempt from reporting, such amounts will be separately disclosed to the Plan’s independent fiduciary and reported on the Schedule C for the Plan’s Form 5500.
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.
*Deposit-based service-fee income is only available on single employer plans and certain cash balance plans.
1Transamerica’s Standard Service-Fee Income Program. Deposit-based income is not available for multiple employer plans, certain defined benefit plans, and Retirement Plan Exchanges®.
2Transamerica’s TPA Advantage Rewards ProgramTM. This program may be modified or discontinued at any time. Membership in the TPA Advantage Rewards ProgramTM is based on the PCY new assets and plans achieved in the PCY. See special membership considerations below.
3Transamerica’s TPA Partnership Referral Program. Transamerica reserves the right to cap payouts at a TPA firm level with advanced notice. Transamerica reserves the right to suspend or change this program at any time. Transamerica may interpret the terms of this program in its sole discretion, including, but not limited to, the validity of leads generated and timing of installed plans. Transamerica reserves the right to determine, in its sole discretion, which TPAs are eligible for the program and which TPAs, if any, qualify for the payments and/or benefits described herein. Transamerica’s Partnership Referral Program is separate and distinct from Transamerica’s Standard Service- Fee Income Program. Point-of-sale paperwork needs to be signed and submitted by December 31 and assets must be received by March 31. Additional benefits are made available once referral sales reach 12 plans and $15 million in assets.
Once a TPA qualifies for Tier 3, he or she should contact his/her TPA Services vice president to determine how best to enjoy the additional benefits of the program. Tier movement is based on funded plans. This scale for payment applies only to plans sold by Transamerica where Uniglobal actively promoted Transamerica (as a company) to a financial advisor, CPA, plan sponsor prospect or other referral source, and has been proactive with joint marketing efforts and other services related to the referred cases, as appropriate. This scale will not be modified on a case-by-case basis. For Emerging Markets plans, this program will only pay to a maximum of $5 million in transfer or $5,000 based on assets per plan. For Institutional Markets plans, this program will only pay to a maximum of $10,000 based on assets per plan. Please note that all plans listed in the example are referred by Uniglobal. For plans referred to an institutional regional vice president with over $20 million in transferred assets, a one-time payment of $10,000 will be made to the referring TPA. Any other opportunities will need prior discussion as to the amount of payment. Payments are made in the month following the quarter end in which the asset transfer are allocated at Transamerica. Plan paperwork must be signed and submitted to Transamerica by December 31.
Payments are made via check in the month following each quarter end in which the plan is funded. Multiple-plan opportunities are priced separately. Marketing events may be utilized for the audience of Uniglobal’s choice: financial advisors, plan sponsors, or CPAs. All plan types qualify. Payments for multiple employer plans (MEPs) are only made on the assets associated with the transfer, and do not include individual adopters into an MEP/PEO after the initial installation. The multiple employer plan has two quarters in which to transfer all agreed-upon new business commitments, in order to qualify for the payout. Similarly, payments for a Retirement Plan Exchange® are also only made on the assets associated with the transfer (based on the new business commitment achieved in two quarters), and does not include individual participating employers added into the Exchange after the initial installation in the current year.
Transamerica Retirement Solutions, LLC is not affiliated with Uniglobal Pension Planning, Inc..