A1258690384WtnRe - PowerPoint PPT Presentation

Title: A1258690384WtnRe


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UFPC 401(k) PlanFor Franchisees of AW, KFC,
Long John Silvers, Pizza Hut, Taco Bell

The information contained in this presentation is
being provided with the understanding that it is
not intended to be interpreted as specific legal
or tax advice. Individuals are encouraged to see
the guidance of their own personal legal or tax
counsel.
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Welcome to the UFPC 401(k) Plan!

• The UFPC 401(k) Plan was developed in January
  2000 in cooperation with Yum! Brands, Inc. and
  UFPC to provide a low-cost, high quality
  retirement plan for franchisees of AW, KFC, Long
  John Silvers, Pizza Hut, and Taco Bell.
• The UFPC 401(k) Plan features
• Low administration costs
• Ongoing help with plan management
• Flexible plan options
• Access to top investment funds
• Free plan-specific investment strategies through
  www.401ktoolbox.com service managed by PMFM, Inc.

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Our Market

• Since the UFPC 401(k) Plans inception, numerous
  franchisees across the country have taken
  advantage of this valuable employee retention
  tool.
• Because we service the franchisee market, we
  understand the challenges associated with the
  quick service restaurant industry and have
  solutions that work.

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What is a 401(k) Plan?

• A type of qualified retirement plan
• A plan established by the employer (franchisee)
• A plan where contributions can be made by the
  employee and/or employer

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Why do franchisees use 401(k) plans?

• Favorable federal tax benefits for the franchisee
  
• Favorable federal tax benefits for the employee
• Helps attract and retain employees
• Helps make you competitive with other employers

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Who contributes to a 401(k) plan?

• Both employees and employer may contribute
• Employee contributions are made by pre-tax
  deferrals
• Employer contributions are discretionary and may
  be either matching contributions or profit
  sharing contributions

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What is a Safe Harbor 401(k) plan?

• As a general rule, a 401(k) plan must satisfy
  non-discrimination requirements. Many small
  businesses find this hard to do, and as a result,
  owners and highly compensated employees may be
  limited to the amount they can contribute to the
  plan. Plans now have alternative, simplified
  methods of meeting the non-discrimination
  requirements. 401(k) plans that adopt one of
  these alternative methods are referred to as
  safe harbor 401(k) plans.

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Should I use a Safe Harbor 401(k) Plan?

• Key Features
• VESTING
• All employee and employer safe harbor matching or
  non-elective contributions are 100 vested
  immediately.
• CONTRIBUTIONS
• The employer may elect either a matching formula
  or a non-elective formula of eligible employee
  compensation to satisfy IRS safe harbor
  requirements.
• 1/1 up to 4 for all participating employees OR
• 3 non-elective deferral of all eligible
  employees, whether or not they are participating.
• Key Advantages
• PLAN COMPLIANCE
• Safe Harbor 401(k) plans do not require extensive
  discrimination testing.

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Can I roll my current retirement plan over?

• Existing 401(k), profit sharing, pension,
  HR-10/Keogh, IRAs, SIMPLE IRAs, and SEP Plans
  can be transferred.
• Roth IRAs and Roth 401(k)s cannot be
  transferred to this plan.

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UFPC 401(k) Plan Cost Features

• UFPC has negotiated very attractive plan features
  on your behalf
• 1. LOW out-of-pocket costs for the franchisee
• One-time plan start-up fee of 250
• Annual plan administration fee of 450 plus 15
  per participant. Each plan has a MAXIMUM
  administration fee of 1,950 per year, no matter
  how many participants you have.
• No monthly or quarterly fees
• EXAMPLE Plan A has 20 plan participants
• Yearly administration cost for the plan is 450
  (20 x 15) 750
• EXAMPLE Plan B has 200 plan participants
• Yearly administration cost for the plan should be
  450 (200 x 15) 3,450
• BUT, since there is a maximum out of pocket cost
  negotiated by UFPC, your company pays ONLY 1,950

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UFPC 401(k) Plan Cost Features (cont)

• 2. NO surrender charge on the UFPC 401(k)
• 3. NO check writing fee for distributions from
  the plan
• 4. FREE enrollment meetings in English and/or
  Spanish at multiple locations
• 5. FREE 401(k) Toolbox - an independent internet
  investment strategy tool managed by PMFM, Inc.
  that helps your employees select the right
  accounts among those available in your plan AND
  reduces your fiduciary liability as a trustee
• 6. Administration is included to help plans stay
  in compliance and to prepare necessary tax
  documents for the franchisee

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UFPC 401(k) Investment Cost for Participants
Investment Management Fee
Underlying Account Fee
Total Cost to Obtain/Maintain an Investment
Asset Fees



Regardless of provider, the sum of these 3 fees
is the cost for an individual to obtain/maintain
an investment under a plan. Many fund providers
move these fees around to look more competitive.
We believe that when you compare our costs with
others, you will see that this product is the
most competitively priced program available.
Proposals are available which show the investment
cost of each separate account available in the
plan.
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The UFPC 401(k) Investment Platform

• The UFPC Franchisee 401(k) uses an unregistered
  group variable annuity contract with a
  competitive guaranteed fixed investment option

All guarantees are based on the claims paying
ability of the issuer.
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Features of the UFPC 401(k) Plan

• Over 50 investment options
• Free customized enrollment booklets in English
  and Spanish
• Interactive website allows transactions to be
  requested 24 hours a day
• Toll free Customer Service available 8 a.m.-8
  p.m. (Eastern Time), Monday through Friday
• Daily performance updates
• Quarterly newsletters
• Award-winning quarterly statements to
  participants include
• Benchmark index comparisons
• Personal rates of return
• Free employee education materials

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Your 401(k) Team

• Unified Foodservice Purchasing Co-op (UFPC)
• Serves all corporate and franchise-owned AW,
  KFC, Long John Silvers, Pizza Hut, and Taco Bell
  restaurants in the United States.
• Provides their members with an ensured supply of
  specified products at a low cost.
• Ricke Associates
• A strategic provider for UFPC
• Specializes in helping franchisees grow their
  business, protect their income, preserve capital,
  and accumulate wealth.
• The financial representatives and contact for the
  UFPC 401(k) plan.
• Foley Benefits Group
• Third party administrator for the UFPC 401(k)
  Plan
• Provide comprehensive recordkeeping and plan
  management and prepare plan year end reports and
  IRS tax filings

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The Winning Combination

• Our team will provide you all facets you need
  in a retirement plan.
• Support from Ricke Associates and our 401(k)
  provider
• Affordable, flexible 401(k) contract
• Plan-specific investment strategies for
  participants from 401(k) Toolbox, an online
  resource managed by PMFM, Inc.
• Plan administration by Foley Benefits Group, LLC

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The UFPC 401(k) Plan Benefits

• Franchisee saves money with lower UFPC-negotiated
  fees
• ? Franchisee can elect to make a contribution
  or not make a contribution to the plan
• Franchisee can design the plan with flexible
  options and eligibility requirements
• Franchisee receives valuable employee marketing
  and education materials
• Franchisee receives plan management support so
  that they can focus on their core business
• Participants receive important planning tools
  with online investment strategies

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Summary

• The UFPC 401(k) Plan helps you attract, retain,
  and reward
• your employees. Franchisees all across the
  country are taking
• advantage of this special benefit program. Call
  or e-mail us today
• to see if the UFPC 401(k) plan makes sense for
  you.
• For More Information, Please Contact
• Larry E. Ricke, CLU, ChFC
• Ricke Associates
• 425 Bank Street, P.O. Box 906
• New Albany, IN 47150
• Phone 1-888-537-4253, (812) 944-4461
• Fax (812) 945-1328
• lericke_at_finsvcs.com