The OMNI Observer June 2009

• In our last issue, we announced the availability of ONLINE SRA forms. Since their introduction, the number of online forms that have been completed is close to 1500. Not only have Online SRAs enabled changes to be made faster than previously possible they have also saved an estimated 6000 pages of paper in the past quarter alone! Truly a win-win situation, for you and the environment!

  If you haven’t yet had the opportunity to use the new online SRA, here’s a step-by- step guide of what to do:

• Visit OMNI’s Website at www.omni403b.com and click on the ‘clients’ tab located at the left hand side of the screen. Click on “Client Home Page
• Select your district’s name from the drop-down menu, and hit ‘submit.’ Be sure to select your specific district- many districts have similar names!
• Once you have reached your district’s homepage, select the “New Online Version option” located at the top of the screen.


• Once you have reached the online SRA for your district, complete all of Part 1, and enter your date of hire in part 2. Pay special attention to the formatting of your date of birth and date of hire which must be entered in the format of mm/dd/yyyy, including slashes.
• Part 3 of the online SRA is where it gets exciting! Check the box for the option that bests describes the change you would like to make. After checking a box, several fields for additional information will then appear. For example, if you wanted to initiate a new salary reduction, you will be prompted to select a plan type, (403b, 457 etc.) select a service provider from your plan’s list of Participating Service Providers, provide an account number (mandatory,) and indicate your contribution.
• For all transactions you will be asked to enter an effective date. If you would like your change to become effective for the next payroll, simply enter today’s date. If you would prefer your change to be effective sometime down the road, you can feel free to enter a future date..
• Once your form is completed, scroll down to the bottom of the page and enter your social security number as an online signature and click ‘continue.’ You will then be prompted to review your SRA- if you want to make any changes, this is your opportunity. Once you have reviewed your request, scroll to the bottom of the page once more, re-enter your social security number, and click submit…you’re done!
• You will receive an e-mail notification that your form has been received by OMNI, complete with tracking information. If you are establishing a new deduction, remember that OMNI will need to call your service provider to confirm your account before contributions can begin- this process generally takes 1-2 weeks. For other changes, you can expect to see results by your next pay period.
• As always, if you have any questions, you can contact OMNI’s Customer Care Department at 877-544-6664.

How to not get lost in the 403b jungle

Have you ever wondered what happens to your 403b contributions after they are withdrawn from your paycheck? You may have noticed that your contributions don’t appear instantly in your 403b account; it’s a long trip through the jungle- here’s your map.

• MONEY DEDUCTED FROM YOUR PAYCHECK
• FUNDS FOR ALL PARTICIPANTS AT YOUR DISTRICT DIRECTED TO OMNI
• OMNI ENSURES THE AMOUNT YOU REQUESTED MATCHES THE AMOUNT RECEIVED
• OMNI SENDS YOUR MONEY ON TO YOUR SERVICE PROVIDER. ELECTRONIC TRANSFERS OR CHECKS GO OUT EVERY TUE. AND FRI.
• YOUR SERVICE PROVIDER RECEIVES THE FUNDS, AND DISTRIBUTES THEM INTO THE INVESTMENT VEHICLES YOU HAVE SELECTED
• YOU CAN VIEW YOUR ACCOUNT BALANCE

In most cases, your funds will spend no more than a day or two ‘in transit’ before they are received by your service provider. In the unlikely event that the amount OMNI has received from your employer doesn’t match what you have requested on your SRA, we will work with your employer to determine the cause of the difference. In these rare instances, your funds will be remitted the following Tuesday or Friday following the resolution of the problem.

‘What once was easy is now complex,’ or perhaps more aptly, ‘it’s a jungle out there.’ Since the introduction of new IRS regulations in the beginning of 2009, either phrase perfectly defines the current state of the 403b marketplace. What used to be an every day transaction can now take far longer. As Third Party Administrator, (TPA) OMNI is charged with performing Due Diligence on many 403b transactions. Here’s a look at what goes on behind the scenes when OMNI processes some common 403b Transactions

• Distribution
  
  • Ensure that ALL paperwork has been received from your service provider, and completed properly
  • Verify with employer date of birth and/or date of separation
  • Provide signoff and return to fund company
• Exchange
  
  • Ensure that ALL paperwork has been received from your service provider, and completed properly
  • Check that receiving service provider participates with the employer in question
  • Provide signoff and return to fund company
• Hardship
  
  • Ensure that ALL paperwork has been received from your service provider, and completed properly
  • Receive OMNI’s Hardship application available at www.omni403b.com
  • Receive evidence of immediate & heavy financial need (as defined by the IRS)
  • Verify that your employer’s plan allows 403b loans
  • Verify the amount that can be withdrawn (only employee contributions can be withdrawn in the event of a hardship)
  • OMNI contacts employee to update on status of hardship request
  • Provide signoff and return to fund company
• Loan
  
  • Ensure that ALL paperwork has been received from your service provider, and completed properly
  • Receive OMNI’s Loan application available at www.omni403b.com
  • Verify that your employer’s plan allows 403b loans
  • Obtain account balance and loan history from service provider.
  • OMNI contacts employee to update on status of loan request
  • Provide signoff and return to fund company

* Note that submission of incomplete documentation will increase processing time. OMNI must receive all documentation for your transaction, not just a signature page.

• OMNI’S SUMMER HOURS
• Summer is almost here! In light of decreased summertime call volume, OMNI’s Customer Care Team will be available between 7:30 am and 4:00 pm for the months of July and August. OMNI’s Customer Care Center can be reached at 877-544-6664.


• OMNI’S VENDOR HOTLINE
• OMNI’s vendor hotline will continue to be available between 7:30 am and 4:00 pm. Geared to provide prompt service to financial advisors, agents, and brokers, the Vendor Hotline is available at 877-544-6664 opt. 7.


• IN OUR NEXT ISSUE
• 2009 Maximums How much can you contribute this year?

• April 2009