81-100 Group Trusts With Adam Ponder Adam Ponder Co-Founder & - - PowerPoint PPT Presentation

81-100 Group Trusts

With Adam Ponder

Adam Ponder

Co-Founder & Executive Vice President

What is an 81-100 Group Trust?

Record Keeper Investment Manager

Custodian 81-100 GROUP TRUST

Plan Plan Plan Plan Plan Plan

Why is it called an 81-100 Group Trust? 1981 IRS Revenue Ruling 81-100

Can anyone invest in an 81-100?

401(k) Pr o fi t sh a r ing De fi n ed Be n e fi t Ta ft -Ha r t l e y Un i o n 457(b ) S t o c k Bo n u s 403(b )(9 ) Go ve r nm ent al Re t i r e m ent Ca sh Ba l a n c e M E PS

MEPS vs 81-100 Group Trust

M E P

81-100 GROUP TRUST

M E P

81-100 GROUP TRUST

Plan Specifications Plan Specifications Plan Assets Plan Assets

Does each plan still need its own trust?

81-100 GROUP TRUST

Plan Plan Plan Plan Plan Plan MEPS

Group Trust Roles

Record Keeper Investment Manager

Custodian 81-100 GROUP TRUST

Plan Plan Plan Plan Plan Plan

Plan Advisor Plan Advisor Plan Advisor Plan Advisor Plan Advisor Plan Advisor

81-100 GROUP TRUST

Small plan solution

ASSOCIATION GROUP TRUST

Associations

• r

Groups

Association

Member

401(k) 401(k) 401(k) 401(k)

Member Member Member

81-100 GROUP TRUST

Wealth Manager

401(k) 401(k) 401(k) 401(k) Wealth Client Wealth Client Wealth Client

Wealth Client

Wealth Manager

Broker/Dealer RIA

81-100 GROUP TRUST FUND LINEUP

Large Cap Mid Cap Small Cap Fixed Income International Target Date Large Cap Mid Cap Small Cap Fixed Income International Target Date Large Cap Mid Cap Small Cap Fixed Income International Target Date

Unitized Managed Accounts

81-100 GROUP TRUST FUND LINEUP

Large Cap Mid Cap Small Cap Fixed Income International Target Date

Complete the Group Trust Questionnaire Sign Group Trust 3(38) Advisory Agreement (w/ IPS) Sign Group Trust Record keeper agreement Alta Trust’s Trust Committee Approves Alta Trust Signs Custody Agreement

Process for Establishing a Group Trust

Alta Trust Signs UMA Paperwork (if applicable) Alta Trust Signs CIT Paperwork (if applicable)

Process for Adding Plans to a Group Trust

Plan fiduciary signs the participation agreement Record keeper coordinates the conversion of assets

8 1 - 1 0 0 G R O U P T R U S T F U N D L I N E U P

Mid Cap Mutual Fund Small Cap Mutual Fund Large Cap Mutual Fund International Cap Mutual Fund

8 1 -1 0 0 GROUP TRUST FUN D LIN E UP

Mid Cap CIT Small Cap CIT Large Cap CIT International Cap CIT

Lower Fees

Benefits of a Group Trust

Customizes the brand Turnkey Potentially Lower Fees

Questions?

Thank You

Adam Ponder (303) 996-3786 aponder@trustalta.com Scott Patton (309) 495-1947 scott.patton@abgemail.com

How are you able to Pool Assets and not Create a Mutual Fund?

Investment Company Act of 1940 section 3(c)(11)

“Any employee’s stock bonus, pension, or profit-sharing trust which meets the requirements for qualification under section 401 of the Internal Revenue Code of 1986; or any governmental plan

described in section 3(a)(2)(C) of the Securities Act of 1933; or any collective trust fund maintained by a bank consisting solely of assets of one or more of such trusts, government plans, or church plans, companies or accounts that are excluded from the definition of an investment company under paragraph (14) of this subsection; or any separate account the assets of which are derived solely from (A) contributions under pension or profit-sharing plans which meet the requirements of section 401 of the Internal Revenue Code of 1986 or the requirements for deduction of the employer’s contribution under section 404(a)(2) of such Code, (B) contributions under governmental plans in connection with which interests, participations, or securities are exempted from the registration provisions of section 5 of the Securities Act of 1933 by section 3(a)(2)(C) of such Act, and (C) advances made by an insurance company in connection with the operation of such separate account.”

Investment Company Act of 1940 section 2(5)

(5) ‘‘Bank’’ means: (A) a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) or a branch or agency of a foreign bank (as such terms are defined in section 1(b) of the International Banking Act of 1978) (B) a member bank of the Federal Reserve System

(C) any other banking institution or trust company, whether incorporated or not, doing business under the laws of any State or of the United States, a substantial portion of the business of which consists of

receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the Currency, and which is supervised and examined by State or Federal authority having supervision over banks, and which is not operated for the purpose of evading the provisions of this title (D) a receiver, conservator, or other liquidating agent of any institution or firm included in clause (A), (B), or (C) of this paragraph.”

“Bank-maintained” under the federal securities laws has been interpreted by the SEC to mean “substantial investment responsibility”.