401k Solution pricing covers absolute access to your Plan Sponsor Gateway and Plan Participant Gateway and all the functions they contain as well as any help you may need with using your online system.





PSC Full-Service 401k Plan Pricing

Plan Size	Annual Fee
1 eligible employees(plus spouse)	$1390 a year--complete
2-4 eligible employees	$2390 a year - complete
5-10 eligible employees	$2590 a year - complete
11-15 eligible employees	$2990 a year - complete
16-20 eligible employees	$3390 a year - complete
21-25 eligible employees	$3790 a year - complete
26-30 eligible employees	$4190 a year - complete
31-35 eligible employees	$4790 a year - complete
36-40 eligible employees	$5390 a year - complete
41-45 eligible employees	$5990 a year - complete
46-50 eligible employees	$6590 a year - complete
more than 50 eligible employees	$6590 plus $300 per each additional 5 eligible employees
The first year only, there is also a $1495 one-time plan setup and software customization fee. This fee does not vary with plan size.

One of the great things about 401k Solution is its adaptability. Our IRS-approved prototype 401k plan includes a host of customization choices, and our web-based 401k plan administration system includes additional customizable administrative features.





401k Solution customizable 401k plan items include...







See our Order Form for the options currently available under each of these 401k customization items.

Future Changes
You don't ever have to feel locked in to your 401k plan customization decisions with 401k Solution. For instance, some companies choose to exclude 401k loans in the early years of their plan, then add the option in at a later date.

401k Solution includes EVERYTHING you need to provide your company with a great 401k plan right from any computer with Internet connection in about 20 minutes a month (for most small business 401k plans).

401k Solution includes...

401k online system
We customize our powerful yet easy-to-use web-based 401k plan administration system to the exact 401k plan. The customization information works in conjunction with the up-to-date IRS and other governing regulations programmed into your software to streamline your 401k's operation while keeping you apprised of your plan's health and growing wealth. Your online system has built-in safeguards barring you from running your 401k plan under the wrong rules, and it is updated continually to conform with ever-changing regulations.

401k help
You receive free, professional help with understanding your 401k plan management options as well as running your 401k Solution. Plan operation help includes a fantastic 401k Plan Management Guide as well as both free and affordable fee-based technical support.

401k investments
401k Solution lets you choose both the investment approach (self-directed brokerage accounts and/or no-load mutual fund family) and the specific investment provider(s) for your 401k plan. No other 401k plan offers greater investment flexibility. Visit our Investments pages for specifics, including listings of potential investments.

Plan-specific 401k forms and materials
Our online plan-specific 401k participation and employee education forms and materials explain 401k concepts (401k loans, 401k enrollment, 401k investing, etc.) to your employees while gathering the data needed to run your company plan. Included is an introductory slide show in convenient video format for introducing your employees to 401k plans and its tremendous savings potential.

IRS reporting help
Our 401k FedForms website (www.401kfedforms.com) tells you which federal reporting forms are relevant to your particular 401k plan, then shows you annotated versions of each relevant Form or Schedule (Form 5500, 1099-R, etc.) so you know exactly where within your 401k software to locate needed information. 401k FedForms even includes ready-to-complete Summary Annual Report PDFs that take just moments to fill in!

Under federal regulations, the $1495 one-time set-up fee your company pays for its 401k Solution may be refunded in the form of a federal tax credit. New 401k Solution plans qualify to receive this federally-mandated dollar-for-dollar refund, but there are some restrictions. If you are interested in receiving this tax credit, please consult your tax advisor.

The 401k Solution can accommodate 401k plans of any size. Most plan conversions to a 401k Solution system can be completed for $500 or less.

A 401k Solution plan conversion includes, as applicable:

The US Labor Department is currently auditing 401k plans of all sizes because of a trend that may violate current pension laws. Many companies, especially smaller businesses, are shifting plan administrative expenses to plan participants, knowingly or unknowingly. This shift of plan expenses come in the form of "hidden fees" that are routinely deducted from each participants' retirement savings by some plan providers and mutual funds. Because of lax reporting requirements, no one really knows how much money changes hands behind the scenes, but it is estimated that excessive fees may be as much as $1.5 billion per year, and growing.

In the 401k arena, expense fee disclosure, whether to plan participants or plan sponsors, has been notoriously confusing and unclear. The impact of these confusing hidden fees on plan participants' retirement accounts can be very significant over time. As example, consider a hypothetical 401k investment such as a mutual fund, with deducted expense fees of 1.3 percent versus one with fees of just .3 percent. Applied to an initial 401k investment of $5,000, with regular annual investments of $5,000 returning 10 percent, and compounded over 15 years, the difference between the "low-fee" investment and the "high-fee" investment adds up to $15,398. That's a significant sum deducted from a participant's retirement savings.

Policymakers and plan sponsors seeking to structure well-managed 401ks for their aging workforces are beginning to acknowledge the negative impact hidden fees has on eroding pension accumulations for retirement. What might appear to be a small difference in deducted investment fees can result in substantial differences in eventual retirement benefits.

According to Forbes Magazine, "Retirement Plans From Hell" 7/13/09 by Scott Woolley, hidden fees are a common occurrence in 401(k) plans offered by AIG, John Hancock, AXA Equitable, Lincoiln Financial, and other providers. The following are some excerpts from the article:

Early this year the woman overseeing the 401(k) plan for a rural Oregon company gathered her 25 colleagues together to hold an election. At stake: whether to continue paying AIG an annual 1.25% of assets to manage their 401(k) plan as part of an insurance contract, or switch to mutual funds costing a third less. No surprise that the proposal to convert passed easily.

Then the nasty surprises started popping up. As she sought to unwind the plan, the administrator discovered that AIG had been tacking on a variety of fees all along. One nicked employees for 2% annually when they borrowed money from their own 401(k) s--work the new plan was willing to do for a flat $50 a year.

To top it off, AIG said that many of the employees would have to wait five years to get back their entire nest eggs, with no choice but to keep paying the fees. AIG says such lockups are disclosed in its plan contracts and are shorter than the ones many other insurers impose.

The company's frustrated administrator, who agreed to talk only anonymously, says she's still baffled by the complex annuity contract. "We still don't have a good handle on what they're charging us," she says.

Like the Oregon outfit, lots of mostly small companies are finding out the hard way that the 401(k) plans they bought from insurance companies, usually set up as "group annuities," came with a variety of hard-to-find charges and lockups. Or, more aptly, the plans they were sold by people motivated by lavish commissions. Many hyped the product as a low- or no-cost proposition for employers while glossing over the fees charged to employees. A successful ruse it is. All told, insurers have lured 18,000 companies into parking $185 billion of 401(k) assets inside group annuities and similar insurance contracts, according to an analysis by Larkspur Data Resources of plans with under $250 million in assets.

"Insurance companies cater to the smaller, less sophisticated part of the market," says Robert Prall, managing partner of Rx Investment Solutions, which advises companies on how to build low-cost 401(k) plans. "Every time we've gone into a company that has a group variable annuity contract, no one has really understood how it worked."

One John Hancock group annuity contract allows it to skim off up to 5% of assets before the remains go to work for savers. That's on top of "trailer" commissions of up to 1.4% of assets annually for as long as the plan exists and "asset charges" of up to 4%. John Hancock says those maximum fees provide a distorted picture and that it offers a variety of competitive rates. Why then, you might ask, does another piece of fine print state that John Hancock makes no claim "that any expenses paid directly or indirectly by the plan are reasonable"?

"When it comes to fee abuse in retirement plans, you can put group annuities at the top of the list," says Daniel Maul, an investment advisor in Seattle, Wash. who helps small firms set up 401(k) programs.

Among 401(k) plans with assets of less than $250 million, group annuity-style menus account for 55% of the market and are sold by AXA Equitable, Lincoln Financial and other insurers. A few are like the deferred annuities sold outside retirement plans that combine some life insurance coverage with savings features. Those products typically offer investors a choice of mutual funds; the insurance takes the form of a pledge to pay their heirs what they put in if they meet with an untimely end at a point when the value of their assets has fallen. At the end of their careers, deferred annuity holders can receive their savings either as a lump sum or as annuity payments for life.

The annuity trappings do, however, mean that investors get hit up for higher fees. John Hancock's group annuity offers the JH American Funds Growth Fund of America at a cost of 0.91% annually. Other 401(k) investors can get an identical fund at less than half the cost.

An accountant at a five-person Texas firm was shocked to discover while looking through his 401(k) statements recently that AXA Equitable's group annuity was charging 1.69% annually to own its version of an S&P 500 index fund.

While insurance salesmen are free to present themselves as honest brokers, they are not required to regard themselves as fiduciaries with a legal obligation to put plan participants' interests first. Often they don't.

Among 401(k) plans designed for small companies, the total fees on some group annuities can top $1,000 per participant every year, or three times what low-cost 401(k) plans cost, according to data provider 401kSource. Have second thoughts after signing up and you'll discover that buying a group annuity is like joining the Sopranos.

"Surrender charges allow insurers to offer very generous commissions," explains Parker Payson of Employee Fiduciary, a Mobile, Ala. firm that sets up low-cost mutual-fund-based 401(k) plans for small companies. "The annuity provider wants to make sure the client is there long enough to recoup the commission."

Customers, for the most part, haven't evolved to the point where they know what's going on. Two-thirds of workers are unaware that they're paying anything for 401(k) plans, according to a 2007 survey by AARP.

We at Pension Systems Corporation, distributor of 401k Easy and 401k Solution, has always worked hard to keep 401(k) plans as affordable as possible for our clients, many being small and very small companies.

Our policy is not to accept any rebates or revenue sharing of fees deducted from our clients' plan assets unless those fees can be returned to the plan, or used by Pension Systems Corporation to offset plan expenses. Entities that provide and support 401(k) plan investments, include mutual funds managers, fund distributors, asset custodians, asset trustees, investment brokers and advisors, and plan administrators and record-keepers. These entities typically earn at least a portion of their compensation from asset-based fees deducted from plan assets.

401k Solution is an exception to the norm in that we do not earn any compensation, either directly or indirectly, from our clients 401(k) plan assets. If rebates are offered, we instead have the rebates returned to the client or directly applied to reducing our clients' costs. Our published prices, available online for all to see, are the only net compensation we collect.

Asset-based fees are an unavoidable fact of life if your company is using mutual funds or self-directed brokerage accounts for the 401(k). The cost of these asset-based fees must be included when determining the true, overall cost of a company's 401(k), By applying these fees to keep overall costs down, Pension Systems Corporation is doing its part to keep 401(k) plans as affordable as possible.

For more information on asset-based fees we recommend reading "Revenue Sharing in the 401K) Marketplace--Whose Money Is It?" by The McHenry Consulting Group http://www.mchenryconsulting.com/ and Study of 401(k) Plan Fees and Expenses by the US Department of Pension Welfare and Benefits.

All 401k Solution prices include taxes, shipping and handling. When we say "everything is included," we mean everything!