KSOP Administration

Many KSOP providers utilize separate software to perform the ESOP administration and simply show the year-end value of the ESOP portion of the plan on the 401(k) statement. Our KSOP solution fully integrates the records of the ESOP portion of the plan into the 401(k) software, thus a true KSOP solution. The detailed information shown on the participant statements and participant website for the ESOP portion of the plan contains the same information as the daily valued funds.

We have implemented an ESOP/401(k) service arrangement incorporating a daily recordkeeping provider that is not affiliated with any investment products to provide a cohesive KSOP administrative solution. We utilize software designed to perform ESOP administration on a share accounting basis. Because information on a daily valuation 401(k) software recordkeeping system is updated on the participant website on either a real-time or daily batched basis, performing ESOP administration on this type of a system is not desirable because the ESOP administration cannot be completed in one day. Participants viewing their accounts on the website during this time may see non-reviewed ESOP transactions and partially completed year-end ESOP transactions; therefore, we perform the ESOP administration on a separate recordkeeping system. Once complete, we fully integrate all ESOP records into the daily valuation software.

With our KSOP solution, the participant ESOP records are updated as often as necessary. For many KSOPs, the ESOP records are required to be updated twice annually; when the year-end ESOP allocations are completed, and again when the ESOP distributions and diversifications are processed. We customize our KSOP procedures to meet the specific needs of each KSOP we administer.