‘Common Remitter,’ Defined

A common remitter is a type of third party administrator service that: 

• Captures data from the employer’s payroll; 
• Compares the amounts remitted with expected employee contributions; 
• Compiles and reconciles exceptions with the payroll department; 
• Identifies employees eligible for “catch-up” contributions and applies contributions in the proper order; and 
• Distributes contributions to the properly chosen investment providers.

Editor’s Note: This is an occasional feature in the NTSA Advisor. This tip is taken from the 403(b) Plan Sponsor Guide, which is being made available to school districts nationally to assist them in understanding how to improve 403(b) plan participation and savings rates to help employees achieve a comfortable and timely retirement.
 

The 403(b) Plan Sponsor Guide is part of the content contained in the NTSA Certified Retirement Education Specialist (CRES) materials. The NTSA Certified Retirement Education Specialist (CRES) program and designation has been developed in order to equip advisors to be qualified and available to teach the NTSA educational program, which is designed to provide teachers with the basics of planning for retirement and improve their retirement readiness. More information about CRES is available here.