LOS ANGELES Union Bank of California (UBOC), N.A., and 401(k) Pro, Inc. are developing a web-based 401(k) plan administration service based upon their existing desktop product, UBOC EZ 401(k).The service will allow clients to set up and manage low-cost, option-rich "run-it-yourself " 401(k) plans from any location connected to the Internet — be it via computer terminal, web-enabled mobile phone or PDA device — and, like the desktop product, will be particularly geared toward serving small businesses of one to 100 employees. Access via a toll-free automated voice response system will also be available.
"The small business market has been grossly underserved by the pension administration industry. We are pleased with Union Bank ’s decision to develop this unique web-based 401(k)service to deliver full featured, self-service 401(k)plans to small business which will potentially save clients 60% to 80% a year relative to traditional plan administration costs " says Jim Gilbert, President of 401(k)Pro,Inc.
The online service, called UBOC EZ 401(k), will afford employers the same plan-specific, convenient access and rapid processing of data and information requests relating to all areas of 401(k)administration activity, including point-and-click plan compliance testing with results potentially in seconds. Other features will include participant account access, investment education materials and enrollment seminars via web casting.
"Our company is a current user of the desktop product and have been very pleased with our ‘hands-on’ experience and are able to process and validate our 401(k)activity in approximately 15 minutes a month " says Clark E. Cook, Controller for CHSI of Nevada.
As with the desktop product, the online service will allow the client to customize the options and services it wants for its plan. Employer matching contributions, participant loans, and other optional features will be available. A broad selection of mutual fund investments from well-known mutual fund companies and other optional features will be available. All the client’s customized choices, including investments, will be integrated into its online plan administration service.
"Our online service will not only retain the affordability and flexibility of our desktop product but also add the conveniences of online access to plan administration information and provide expanded plan sponsor and participant functionality " says Donna Ross, senior vice president and manager of UBOC 401(k) administration.
UBOC and 401(k)Pro expect to launch the online service in the first quarter of 2002.
Based in San Francisco, UnionBanCal Corporation is a bank holding company with assets of $35.8 billion at March 31, 2001. Its primary subsidiary is Union Bank of California, N.A., the third largest commercial bank in California with 244 banking offices in California,6 banking offices in Oregon and Washington and 18 international facilities. UBOC’s Institutional Services & Asset Management Division has more than $138 billion in assets under administration servicing the 401(k),employee benefit trust, custody, corporate trust and investment management markets. The Website is located at www.uboc.com.
401(k) Pro, Inc. is a Los Angeles-based California corporation and an affiliate of Pension Service Associates, which has been providing full-service defined contribution retirement plans to small and midsize companies since 1982. 401(k) Pro developed 401(k) Easy (www.401keasy.com) a desktop "run-it-yourself" 401(k) service which is based upon their experience and success in the small plans marketplace. The online product will debut in 2002 as a Union Bank of California, N.A., product, and will be offered in derivative versions to other financial institutions and HR service providers through 401(k) Pro, Inc., much as derivative versions of the original desktop product, 401(k) Easy. 401k Pro, Inc. can be contacted at (800) 660-0050 or jgiblert@401keasy.com.