Products April 10, 2008

RIA Firm Rolls Out Advice Service

April 10, 2008 (PLANSPONSOR.com) - A Newton, Massachusetts-based advisory firm has announced the launch of a personalized investment advisory service for lower- and middle-income Americans.
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According to a press release, I-Pension clients can receive money management services for as little as $.50 a day for 401(k) accounts.

“We’ve heard a lot about Universal Health care, both in the media and throughout the presidential elections; however, what about universal wealth care? Every American – including lower- and middle-class individuals – should have the right to financial security when they reach retirement age,” says Jane Mancini, CEO, I-Pension, a registered investment adviser.

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I-Pension has no minimum account size and charges a flat rate for 401(k), 403(b), and 457 accounts: $1.00 a day for accounts of $40,000 or more, and $.50 a day for accounts under $40,000. There are no other costs, according to the firm.

“The unique thing about our program from the employer’s perspective is that they don’t have to change anything about their existing 401(k) plan,” says Mancini. “The I-Pension approach works with any plan administrator and any investment options.”

Non-Employer Account Options

For non-employer sponsored accounts, I-Pension charges a 1.0% annual fee, and, using low-cost index funds and ETFs, I-Pension also can provide a diversified asset-allocation program and a dedicated investment adviser for an all-in cost of 1.2% to 1.5%.

I-Pension clients complete a three-page questionnaire and are matched with an investment model that reflects their investment temperament, time horizon, and outlook. Every client is provided a personalized Investment Policy Statement that describes how his or her account will be managed. Accounts are monitored daily and kept on track using a rules-based rebalancing system, according to the firm.

More information about the I-Pension program is available on www.I-Pension.com .

Compliance April 9, 2008

Employer Fined for Lying on Form 5500

April 9, 2008 (PLANSPONSOR.com) - A Charlotte construction contractor has been hit with $153,000 in penalties and fines and sentenced to one year of federal probation after pleading guilty to filing a false Form 5500.
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A news release said Jeffrey R. Thomas, 56, President of Thomas Construction Services, Inc., received the fine and the term of probation during a hearing before by U.S. District Judge Martin Reidinger of the U.S. District Court for the Western District of North Carolina.

Thomas entered a guilty plea to the charge in December 2007, the announcement said.

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According to a court documents, Thomas admitted to preparing and submitting the falsified Form 5500 for the fiscal year ending June 30, 2002, for the Thomas Construction Services, Inc., Profit Sharing Plan, for which Thomas served as Trustee.

The court documents said Thomas also admitted that, on or about March 11, 2002, he instructed custodian New England Life Insurance Company to remove funds from the plan and to issue a check for $200,000 to the trustees.

About a week later, Thomas opened an RBC Centura Bank account in the name of the plan and, on various occasions, though he was a “party-in-interest,” he withdrew funds from the plan assets and used them to invest in other business interests. The announcement said the plan did not lose money.  

The false statement on the Form 5500 concerned the answer to Part II, question 4, part d, which read, “Did the plan engage in any nonexempt transaction with any party-in-interest?”

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