Deals and People February 12, 2014

Structural Shakeup at Ascensus

February 12, 2014 (PLANSPONSOR.com) – Retirement plan services provider Ascensus created a new organizational structure to support the firm’s growth expectations in the retirement and college savings space.
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The new structure segments the business into two divisions—retirement services and college savings—and implements a realignment of the company’s leadership team. Bob Guillocheau, president and CEO of Ascensus Inc., says the move comes after the company’s successful push into new markets, including online 401(k)s, defined benefit plans, cash balance plans and 529 college savings.

Within the new framework, Shannon Kelly has been appointed president of Ascensus retirement services and Jeff Howkins will serve as president of Ascensus college savings. Both will oversee day-to-day operations of their respective business segments and will report to Guillocheau.

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Prior to her role as president, Kelly worked as executive vice president of client operations and was selected to oversee ExpertPlan in early 2013, after Ascensus acquired the company. Kelly also has extensive experience with business analysis and information technology, the firm says, in addition to overall service and operations expertise.

Howkins remains president of Upromise Investments Inc., a 529 college savings plan provider previously acquired by Ascensus. He joined Upromise Investments in 2004.

As part of the leadership team’s restructuring, Neil Smith, executive vice president of strategic business support services, will continue overseeing strategy, mergers and acquisitions, product development, marketing and training functions. Smith also takes on additional sales responsibilities under the new arrangement. In this role, he will focus on the growth of Ascensus and continue to report to Guillocheau.

More information is available at www.ascensus.com.

Compliance February 12, 2014

Puerto Rico Issues 2014 Plan Limits Guidance

February 12, 2014 (PLANSPONSOR.com) – The Puerto Rico Treasury Department has issued guidance on retirement plan deferral limits for 2014.
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A recent brief from Groom Law Group notes that the PR Treasury issued Circular Letter 14-01 on February 3. The letter details the key deferral limits for 2014.

In particular, for plans qualified only in Puerto Rico (i.e., PR-Only Plans), and for plans qualified in both Puerto Rico and the United States (i.e., Dual-Qualified Plans), the limits on the following will increase:

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  • Annual Benefit Limitation on DB Benefits (from $205,000 for 2013 to $210,000 for 2014);
  • Annual Contribution Limitation on DC Plan Contributions (from $51,000 for 2013 to $52,000 for 2014); and
  • Annual Limitation on Compensation (from $255,000 for 2013 to $260,000 for 2014).

Other plan limits such as Elective Deferrals for PR-Only Plans ($15,000), Elective Deferrals for Dual-Qualified Plans and Federal Government Thrift Plans ($17,500), and Catch-Up Contributions for PR-Only and Dual-Qualified Plans ($1,500) will remain unchanged from 2013.

Additional categories, such as the limit for highly compensated employees, are the same as U.S. plan limits released in October 2013 by the Internal Revenue Service (see “Retirement Plan Deferral Limits Unchanged for 2014”).

A copy of the brief, containing a chart of the 2014 plan limits, can be downloaded here. A copy of Circular Letter 14-01 (in Spanish) can be downloaded here.

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