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Online Module for 403(B) Plans Help School Employers Meet New Compliance Requirements

(Westbury, New York, January 8, 2003)
Paylogix® (http://paylogix.com), a technology based provider of premier billing solutions to the insurance industry, announced the availability of an online TSA Compliance Module for its Premium Solutions® system.

The Paylogix® Common Remitter® system now provides online compliance for 403(b) and 457 plans within a self-serve user-friendly environment for school district clients. Developed in direct response to the Economic Growth and Tax Revenue Reconciliation Act of 2001 (EGTRRA) and Texas Senate Bill 273, this new feature enables automated validation of deferral amounts as well as validating the catch-up provisions for age 50+ and length of service.

Many believe EGTRRA to be the most favorable retirement-related legislation in history. The intent of the regulation was to simplify the administrative burden for both school administrators and their employees. The hoped for result is to make saving for retirement easier for employees—and administration easier for employers. Paylogix® helps to meet this last objective by enabling employers to meet compliance requirements utilizing a simple, un-biased TPA platform.

The new “self-service” compliance function occurs simultaneously with Common Remitter® processing via the Paylogix® on-line premium administration system. The Paylogix® system monitors contributions on a monthly (or payroll) processing basis. Self-serve compliance functionality includes an Election & Compliance Report that details the plan year contributions to date, and indicates those that will exceed plan limits. Upon attaining the maximum contribution limit for the year, notice is sent to the client to cease further deductions/contributions for that Participant. Additionally, real-time access to data is available to view what the current contribution level is, what the YTD contributions are, and what the projected end of year contribution is on both a participant and group level.

Founded in 1995, Paylogix® pioneers and incorporates innovative technologies like their web-enabled Consolidated Billing® system to provide cost-effective premium-management solutions and expert service to their clients. Paylogix® currently provides premium billing solutions to prominent insurers and group providers throughout North America. More information about Paylogix® can be found on the Internet at http://paylogix.com. Interested parties should call Bruce Kenyon at (800) 622-4131 ext. 307 or e-mail: