Establishing Retirement Match Rules

To establish the matching rules used when the client or the PEO contributes to employees' retirement plans, use the Retirement Benefits Plan form.

Defining the Match Rules

To define match rules:

Open the Retirement Benefits Plan form.

Use this option	To define this
Group	The benefit Group ID. If you are creating a new group, use something brief but descriptive, for example, STD.
Benefit Plan	The Benefit Plan ID.
Network ID	If required, the Network ID for this plan
Effective Date	The date when the plan becomes effective.

Click Save.

Defining Basic Information About Match Rules

To define the basic parameters of the retirement benefit plan, use the Retirement Match Rules panel.

To define the basic parameters of the retirement benefit plan:

Open the Retirement Match Rules panel.

Use this option

To define this

Benefit Group

The benefit Group ID.

Retirement Plan

The Retirement Plan ID.

Effective Date

An existing Effective Date to edit existing match rules. Click New Date to enter a date when new match rules go into effect.

Match Logic Type

The Match Logic Type to use for calculations. All the types include the Maximum Matching Contribution and Other Match Rules panels

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Traditional: Calculates a match based on the employees' contributions, and limits the match to a flat amount or percentage of the employees' earnings.

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Layered: Matches a different percentage for various levels of the employees' contributions.

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Safe Harbor 1: Uses match rates for contributing employees only.

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Safe Harbor 2: Uses match rates for both contributing and non-contributing employees.

The Traditional and Layered match logic types have additional panels.

Comments

Descriptive Comments regarding the retirement plan match rules.

Click Save.

Defining the Maximum Matching Contribution

To define the maximum annual employee matching contributions for a calendar year, use the Maximum Matching Contribution Per Calendar Year (Per Employee) panel.

To define the maximum annual employee matching contributions for a calendar year:

Open the Maximum Matching Contribution Per Calendar Year (Per Employee) panel.

Use this option	To define this
Regular Employer Match	The Regular Employer Match or blank if there is no maximum.
Safe Harbor 1 Contribution Safe Harbor 2 Contribution	The contribution amount.
Safe Harbor 1 Rate Override Safe Harbor 2 Rate Override	The override amount to use if the client uses a retirement plan that mirrors Safer Harbor 1 or Safe Harbor 2 rules, but uses another rate or percentage.
Safe Harbor 2 Flat Rate Override	The amount to use for the calculated match. This overrides the Safe Harbor Type 2 Match.
Non-Elective Contribution	The non-elective contribution.

Click Save.

Setting Traditional Match Rules

If you selected Traditional as the Match Logic Type, the Traditional Match Rules panel displays.

To set traditional match rules logic:

Open the Traditional Match Rules panel.

Use this option	To define this
The company's matching contribution	The company's matching contribution that is equal to the % of the employee's elective contribution to this retirement plan.
The maximum contribution to be made by the company	The maximum contribution to be made by the company that is equal to the % of the employee's retirement basis earnings.
The maximum contribution to be made by the company	Enter a flat amount that is the maximum contribution to be made by the company.
The basis for calculating the maximum matching contribution	The basis for calculating the maximum matching contribution: voucher earnings (default setting), year-to-date earnings, sheltered earnings, or voucher percent divided by the year-to-date flat match.
Classify as Safe Harbor Match	Whether this rule is a Safe Harbor Match (Type 1).

Click Save.

Setting Layered Match Rules

If you selected Layered as the Match Logic Type, the Layered Match Rules panel displays.

To set layered match rules:

Open the Layered Match Rules panel.

Use this option	To define this
Percent Matched	The Percent Matched. The Description indicates whether it is a percent of the first percentage level (first row) or the next level (subsequent rows).
Percentage Level	The Percentage Level of the employees' retirement base earnings.
Safe Harbor	Whether the layer is a Safe Harbor Match (Type 1),. This overrides the value set in Classify as Safe Harbor Match.

Click Save.

Setting Other Match Rules

To specify other match rules that can apply to this retirement plan, use the Other Match Rules panel.

To set other match rules logic:

Open the Other Match Rules panel.

Use this option	To define this
Maximum Matching Contributions per Week	The Maximum Matching Contributions per Week if there is a weekly limit on the calculated match.
Calculate Safe Harbor 2 Non-Elective Contribution in addition	Whether to calculate the Safe Harbor 2 Non-Elective Contribution. If not selected, the employer matching contribution is used.
Non-Elective Rate	The rate that is typically used for profit sharing that accrues per pay period.
Calculate PEO Match	Whether to calculate an additional employer matching contribution, funded by the PEO.
Vesting Code	The Vesting Code used for vesting options. Vesting codes were defined when the retirement plan and its reporting parameters were set up.
Vesting Code-ProfShare	The Vesting Code-ProfShare for profit sharing vesting options.
Suppress Match Print On Check	Whether to prevent the retirement match from printing on pay stubs.
Exclude Catch Up Contribution from Match Calculation	Whether to exclude employees' catch-up contributions when the system calculates the matching contribution.

Click Save.