Billing & Payment Policy for Retirement Plan Services

Version Effective: as of May 1, 2024

• Updates have been made to LRS’ billing and payment policy to reflect requirements and changes related to our new payment processing system.
• Clients can add, delete and maintain multiple forms of payment on record.
• Additional examples have been provided to describe how recurring fees are processed.
• Clients that utilize a bank account will do so at no extra cost; clients that elect to utilize credit card(s) will incur an additional fee.
• Clients are required to maintain a Main and Alternate Billing contact.
• Acceptance of electronic communication.

1. Initial Services & Fees.When setting up a retirement plan, there are one or more one-time fees which are due, upon submission of the LRS Service Agreement. These fees include, but are not limited to, implementation and/or conversion costs, plan design, and compliance/know your customer activities. LRS will transmit an invoice to the company for these initial costs. The company is required to have at least one form of payment on file with LRS (see Acceptable Payment Options herein) and make payment of these initial costs, in full, before LRS will be obligated to proceed with providing services. 
   • When starting new service(s) mid-billing cycle, there will be an initial invoice for any amounts that would have been due had service started at the beginning of the billing cycle, and then installment payments would continue as scheduled moving forward.  For example, if service started in July for an annual fee that is billed quarterly or monthly, an initial invoice would be produced covering January – June, and then recurring invoices would be produced moving forward at the proper monthly/quarterly rate. If that fee is paid just once per year, the entire amount would be paid at the time service starts.
   • LRS does not pro-rate our fees, regardless of when the company starts the plan and/or begins service with LRS, the Company will be responsible for fees related to a full plan year of work as expected of our team. When billing initially begins, the company will be billed for the months of the plan year up to the service start date. For example, if the company starts up a new retirement plan in March with a plan year end of December 31st, the company will be responsible for Plan Administration fees for January and February, as well as March (the effective service month). This policy coincides with the IRS requirement that LRS reports on certain plan activity for the entire plan year.
   • If applicable, initial plan administration and other annual and/or ongoing costs are due in full upon completion of the initial plan design meeting or prior to the retirement plan documents being provided to the company.
2. Ongoing/Recurring Services & Fees. Depending on the services the company is enrolled in, invoicing will occur as follows:  
   • Most LRS recurring fees are referred to as “Annual” fees. These fees are either billed once per year, or in installments throughout the year (monthly or quarterly). Recurring fixed fees are billed in advance, while variable fees are billed in arrears. For example, a fixed annual fee of $1,200/year billed in monthly installments would be $100/month, January through December.  That same $1,200/year fee billed in quarterly installments would be $300/quarter, billed in January, April, July and October. 
   • Fees that are based on changing variables, such as number of participants or account balance, are billed in arrears. The variables used in calculating these fees will be taken from the last day of the previous installment/billing period. For example, an annual fee based on a custody account balance billed quarterly would use the custody account balance on the last day of the previous quarter to determine the billable amount for the current quarter. The variables may be trued up after the close of a year and additional fees may come due.
   •  A true-up of fees may be performed by LRS at any time, throughout the year and you may owe additional amounts resulting from such true-up. This commonly occurs when we use an eligible employee or accountholder count from the end of the last day of your plan’s prior year end to invoice in advance. 
3. One-Time, Special, Project Services & Fees.  LRS will transmit an invoice to client for any one-time, special, and/or project costs. Payment will be automatically processed within 2-3 business days. Payment, in full and/or a deposit for one-time, special or project work (ex. Work Order), is typically required prior to LRS performing one-time, special and/or project services. Payment will automatically be made via the default payment on file with LRS unless other arrangements are made prior to invoicing.
   
4. Acceptable Payment Options. For any costs invoiced to the company and/or to be paid outside of retirement plan assets, payment is made via the default payment method on file with LRS (ACH or credit card). LRS requires companies to maintain a verified bank account and/or active credit card. Additional fees will apply when utilizing a credit card to make one or more payments. 
   • We do not currently accept cash or check payments, unless mutually agreed to otherwise. 
   • You can set up and apply/utilize multiple payment methods. One payment method must be designated as the default/primary payment method and will be used for all invoices. The default/primary payment method can be changed at any time. 
5. When Payment is Due. Payment terms for all invoiced costs are due upon receipt. For specified requests outside of annual or recurring services and corresponding costs, payment in full is expected prior to services being performed. 
6. Responsibility for Payment. The Company is responsible for payment of costs for services to be performed, unless agreed to otherwise. All Members shall be responsible for fees that come due, however, the Company as reflected in the Service Agreement will receive invoices for fees and will be responsible for payment submission, unless mutually agreed to otherwise.
7. Frequency of Payment. Please refer to your 408(b)(2) Service & Cost Disclosure. The company may also contact our Client Experience Team to inquire about available payment frequency options that may be scheduled per the company’s retirement plan type.
   • Mid-month, LRS will email an invoice to the Company. Thereafter, LRS will process the invoiced amount from the Company’s designated credit card or bank account. Overall, the billing process should take 8-10 business days.  If you choose to pay from a bank account, your payment will be processed via an ACH transaction, appearing on your bank statement as LEADING RETIREMENT. If you choose to pay with a credit card, your payment should appear as pending right away, and settle within a few business days. 
8. How Payment is Made. LRS requires a valid form of payment on file; the company can securely add one or more payment methods via the LRS Plan Administration Portal.   Please be aware that some of the services the Company receives may be paid from plan assets, invoiced to the Plan Sponsor, and/or invoiced to another party.
9. Service Discounts.  LRS may agree to and/or offer services, at its discretion, at a discounted cost.
10. Changing Your Payment Method.  If you would like to change your payment method at any time, please log in to the LRS Plan Administration Portal or contact our LRS Client Experience Team.
11. Account Reconciliation. LRS performs billing reconciliation on an ongoing basis, LRS will provide a minimum of 3 days’ notice, via email, when we need to collect funds for open invoices. The funds will be collected from plan assets and/or your default payment method on file. This applies to invoices that are over 30 days past due.
12. Late or Missed Payments. If your account is over 30 days past due, you will incur finance charges on unpaid balances. Finance charges are assessed as it corresponds to the billing frequency of services (ex. Monthly, quarterly, annual and as needed) on any balance 30 days past due. The minimum charge is $35.00 (not to exceed ten (10) percent owed in a calendar year). Partial payments will not be accepted unless otherwise negotiated. Please be aware that if a balance remains unpaid for 120 days, we may refer your account to a collection agency and your retirement plan may be disengaged from our services and our platform.   If this is to occur, you will be notified by email of applicable deadlines related to your plan finding new service providers and moving the retirement plan assets. During the notification period, and while the account remains past due, our team may elect to discontinue providing the Plan or its participants with any additional services.  LRS may cease processing contributions and it will be the responsibility of the company to ensure that contributions are transmitted to the Plan and Participant accounts, timely.
13. Declined or Returned Payments.  The company is responsible for all fees associated with a payment decline or return, including but not limited to the following reasons: if the company has not provided correct payment information and/or has not kept a current, valid form of payment on record.  If your payment is declined or returned, a $50 fee will be billed to your account and your account will be placed on hold. Full payment for the outstanding balance is due before we resume services.
14. Nonpayment. LRS’ policy is to complete and meet the annual government reporting requirements, including but not limited to discrimination testing, financial reporting, plan valuation, IRS Form 5500, contribution processing, distribution, and loan processing for participants only when a client’s billing account is current. 
15. Terminating Services and/or Plan. The company is responsible for paying all recurring/ongoing fees until the plan has been terminated in accordance with applicable law, or until the plan has been transferred in full to another service provider.
16. Recurring Charges Refund Policy.  If the Company is due a refund, LRS will refund the credit due to the account from which the payment was received within 10-15 business days. If the account from which the payment was received is no longer valid, LRS will mail a refund check to the Company within 15-30 business days, unless extraordinary circumstances require otherwise.
17. Maintain Billing Contact(s). The company agrees to maintain a “Main Billing” and “Alternate Billing” contact, on record with LRS at all times. The company agrees to maintain a current phone number and email address for each contact and to timely update phone numbers and emails to ensure that you receive important, deadline driven, communication from us. “Main Billing” and “Alternate Billing” contacts are the only authorized users that can view, add and/or update payment methods via the Plan Administration Portal.
18. Acceptance of Electronic Communication.  The company agrees that LRS may communicate with the company contacts regarding this Agreement and our business relationship with the company by electronic mail (e-mail) as permitted under applicable laws. To receive e-mails from LRS, the company must have regular access to the following technology: a computer or electronic device such as a laptop, tablet, smart phone, or PDA, etc., which has access to the internet and can obtain e-mail from the company’s email provider. The internet connection must be sufficient to obtain emails so that you can read them. A dialup internet connection is the minimum requirement.