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Bundled 401(k) Plans

The earliest 401(k) plans have been in existence for almost 20 years. The popularity of 401(k)s has been enormous. They have rapidly become the foundation for the retirement plans of many Americans. The popularity of 401(k) plans is in part due to their flexibility relative to other retirement plans. A 401(k) serves the needs of both employers and employees. Employers gain more control of benefit costs and employees gain investment freedom and control their contribution levels. However, while a 401(k) plan can be an excellent retirement benefit, your plan is only as good as its investments.


Gabelli Corporate Profile

GAMCO Investors, Inc. (GBL - NYSE) and affiliates serve as investment advisor to thirty mutual funds and a money market funds totaling $20 billion. Its affiliate GAMCO Investors, Inc., manages over $14 billion in separate accounts for institutions, individuals, and qualified pension plans and trusts. GAMCO Investors, Inc. is the parent company of the FINRA (www.finra.org) registered broker/dealer Gabelli & Company, L.L.C., distributor of the mutual funds.

Under the leadership of Chairman, Chief Executive Officer and Chief Investment Officer-Value Products Mario J. Gabelli, CFA, Gabelli Funds, L.L.C. has developed a diversified, equity-oriented mutual fund family to serve the varied financial objectives of individual investors and institutions. Every member of the Gabelli Funds' mutual-fund family is managed with the philosophy that diligent fundamental research is the key to creating wealth in the securities market. In the Gabelli tradition, our research staff focuses on value across the market spectrum. The emphasis is on stock picking - identifying unique investment opportunities overlooked by the Wall Street herd.

The Gabelli Funds began operations in 1986 with the inception of The Gabelli Asset Fund. GAMCO Investors Company, GAMCO Investors, was formed in 1977 to provide discretionary investment management services for a broad spectrum of investors. Today, Gabelli Funds offers a full range of investment options ranging from conservative fixed income funds to aggressive common stock funds. Several alternative investment options such as domestic and offshore equity based limited partnerships are also available.

About the Plan Administrator

The BISYS Group, Inc. (NYSE:BSG), headquartered in New York City, provides business process outsourcing solutions that enable investment firms, insurance companies, and banks to capitalize on convergence by entering new segments of the financial services i ndustry.

The Retirement Services division positions BISYS as a leading third-party administrator of retirement plans and a leading provider of ERISA document management and training services. BISYS is the only firm offering virtually every component of a sophisticated retirement plan infrastructure, including prototype plan design and maintenance, plan administration, forms and documents, customized marketing and sales support, reference resources, a toll-free help line for ongoing access to industry expertise and assistance, web-based planning tools and content, and staff training and development. These turnkey, customizable services currently support approximately 15,000 retirement plans, with more than 1.2 million participants.

BISYS has made significant investments in people, technology and infrastructure to support its growth expectations. There are currently over 1,000 professionals working in the Retirement Services division with a new 100,000+ square foot facility in Dresher, PA for its Pennsylvania associates.

Investment Options

The Gabelli Family of Funds
Every Gabelli fund is managed with the philosophy that diligent fundamental research is the key to creating wealth in the equities market.

The Gabelli Funds 401(k) Plan allows your employees to choose up to fifteen investment options from the list below. Participants can choose any one or a combination of fifteen Gabelli funds, and change the allocation mix daily. A confirmation statement is sent after every investment transaction.

Value
The Gabelli Asset Fund
The Gabelli SRI Fund
GAMCO Westwood Equity Fund
The Gabelli Dividend Growth Fund
Focused Value
The Gabelli Value Fund
Small Cap Value
The Gabelli Small Cap Growth Fund
The Gabelli Focus Five Fund
Growth Funds
The Gabelli Growth Fund
The Gabelli International Growth Fund
Aggressive Growth
The Gabelli Global Growth
Micro-Cap
GAMCO Westwood Mighty Mites Fund
Small Cap Growth
GAMCO Westwood SmallCap Equity Fund
Merger and Arbitrage
The Gabelli ABC Fund		 Equity Income
The Gabelli Equity Income Fund
GAMCO Westwood Balanced Fund
GAMCO Westwood Income Fund
Sector
The Gabelli Global Telecommunications Fund
The Gabelli Gold Fund
The Gabelli Utilities Fund
Specialty Equity
The Gabelli Global Convertible Securities Fund
The Gabelli Global Opportunity Fund
Contrarian
The Gabelli Mathers Fund
The Gabelli Comstock Capital Value Fund
The Gabelli Comstock Strategy Fund
Fixed-Income
GAMCO Westwood Intermediate Bond Fund
Cash Management-Money Market
The Gabelli US Treasury Money Market Fund
Plan Features

Plan Design
Key to the success of any 401(k) program is its plan design. The specialized staff of our administrator is dedicated to addressing each plan sponsor's needs while ensuring regulatory compliance. From plan inception to ongoing administration, BISYS works with the plan sponsor to run each plan smoothly.

With the Gabelli Funds 401(k) Plan, Employers may offer a 401(k) plan in addition to other benefit programs, including Profit Sharing, Money Purchase Pension, or Non-Qualified plans. Depending on your needs, these benefit plans can provide a wide range of retirement options, maximizing the economic and tax advantages for both the plan sponsor and participant.

Plan Documentation
Depending on the design of the plan, we can provide the plan sponsor with a Standardized or Nonstandardized Prototype Plan and Trust Agreement, thus substantially reducing the cost associated with a customized plan. A complete 401(k) documentation package includes a:

  • Plan Adoption Agreement.
  • Plan and Trust Agreement.
  • Draft Summary Plan Description.

Plan Installation
Once a plan is accepted, BISYS begins the installation process. During this phase our new business unit works directly with you to:

  • Gather employee data and investment allocation information.
  • Prepare a draft Summary Plan Description for review by the plan sponsor's legal counsel. Once final revisions are received, Bisys will supply you with one copy to distribute to eligible employees.
  • Provide the plan sponsor with a Welcome Kit, inclusive of installation instructions, enrollment, access to the Employer Services Center, and plan set up procedures.
  • Complete a document evaluation and account reconciliation for existing plans.

Plan Recordkeeping
We firmly believe timely and accurate recordkeeping services are key to the success of any 401(k) program. To ensure a problem free program, we provide the following services and reports on behalf of the plan sponsor and participants. Frequencies may vary depending on plan provisions.

Recordkeeping Services
  • Daily valuation of mutual funds and participant accounts
  • Internet and an interactive voice response (IVR) system for plan sponsor and participant account access and transaction processing
  • Allocation of contributions by mutual fund and contribution type on a monthly, semi-monthly, or bi-weekly basis.
  • Daily investment transfers and investment election changes
  • Comprehensive loan modeling and processing services
  • Monitoring of eligibility, enrollment, hardship withdrawals and maximum deferral limits
  • Vesting calculation and recordkeeping
  • Electronic transfers of contributions and allocations
  • Quarterly comprehensive financial reporting at the plan and participant level
Reports
  • SponsorinSight TM
    You have 24 hour-a-day, 7 day-a-week access to plan-level and participant-level account information via a dedicated website.
  • Monthly Plan Confirmation
    You receive monthly reports detailing all plan-level activity
  • Quarterly Administrator's Report
    You receive quarterly valuation reports summarizing plan-level activity by participant. Reports include comprehensive plan totals and the option of sorting valuations by division or location code.
  • Participant Tax Reports
    Your participants who received distributions from the plan will be provided with the necessary tax reporting form (typically, 1099-R) showing taxable status of distributions.
  • Government Reporting
    Preparation of annual Form 5500.
Plan Administration

Two important objectives of 401(k) Plan Administration are to maintain the plan's tax benefits through government compliance and facilitate employee requests for loans and distributions.

Compliance Services
To maintain a tax qualified retirement program, the plan must comply with specific IRS regulations. We inform plan sponsors of regulatory changes and generates the following tests to assist the plan administrator (the Employer) in fulfilling their responsibility for government compliance.

Nondiscrimination Test    A annual test performed to monitor legal limits restricting deferrals and contributions on behalf of highly compensated employees (HCEs.)
Top Heavy Test An annual test to monitor key employee account balances. A plan is considered top heavy when more than 60% of the plan's assets are owned by key employees. Our test may be limited by the availability of certain historical information needed to perform this test.
415 Limit An annual test to monitor individual participant contributions. Generally, annual contributions cannot exceed $40,000 or 100 percent of pay. Our test is limited to contributions made to this 401(k) plan only and may also be impacted by specific plan provisions.

Loan Processing
An option that is appealing to many participants is the ability to borrow money from their individual account. In accordance with the plan provisions and IRS regulations, our administrator will help the Plan Sponsor establish loan procedures and perform loan administration. Related services and reports include:

  • Services
    Providing loan documentation, loan disbursements, and loan amortization schedules. Tracking outstanding loan balances, principal, and interest repayments and crediting such loan repayments to the appropriate investment options. Loan repayments must be by payroll deduction.
  • Reports
    Plan sponsors receive the following quarterly loan reports: Loan Summary Report A report compiling all loan data per participant loan. Principal and Interest Report A report totaling principal and interest loan payments into each fund.

Plan Sponsor Website Capabilities
SponsorinSight TM, an on-line site for plan sponsors, is a secure way for plan sponsors to get information about their plan and participants, and report data to us.

It's easy, fast, and secure. And because information goes straight from the plan sponsor's records to ours, accuracy is improved. It also means employers spend less time managing their plan and more time focusing on their business. That's why it's our standard method of accepting plan data.

Through SponsorinSight TM, you have the following:

Plan Sponsor Website Capabilities:
  • Modify indicative or census data
  • Add new participants
  • Review fund & source balances
  • Review and modify contribution elections
  • Review transaction history
  • Model a sample loan
  • Produce loan paperwork/submit loan requests
  • Submit termination payouts
  • Submit hardship withdrawals (if applicable)
  • Submit rollover contributions
  • Print a statement-on-demand
  • Print enrollment brochures
  • Submit contribution elections/deferral percentages
  • Review amounts available for loan & hardship (if applicable)
Plan-Level Capabilities:
  • Review plan rules
  • Review loan rules and maintain interest rate
  • Review fund performance information
  • Review detailed activity history
  • Generate and print plan-level reports
  • Update/re-run or print an ADP/ACP test
  • Form 5500 data collection questionnaire and information
  • Submit Payroll Contributions

Participant Website Capabilities

The participant website provides participants with secure, accutate, and up-to-date information about their accounts and allows them to initiate transactions when it is convenient for them. Daily transactions are updated in one business day if received prior to 4 p.m. (EST).

Participant Website Capabilities:
  • Change future contribution elections
  • Make transfers among current funds
  • Re-allocate balances
  • View share price/number of shares
  • Check daily fund results and prices
  • View fund and portfolio summaries
  • Sample loan modeling
  • Retirement planning tools
  • Produce loan paperwork/request loans
  • Request distributions
  • Print a statement-on-demand
  • Print enrollment brochures
  • Submit contribution elections/deferral percentages
  • Wireless Application Protocol (WAP) access via Palm PilotT

Planning for Retirement
Participants can also take advantage of the on-line planner that allows them to complete a simple analysis of their projected retirement plan account and projected financial need for retirement.

Employee Communication
The Gabelli 401(k) Plan is committed to helping plan sponsors achieve the maximum benefit from their plan(s). In order to achieve desired participation levels, the long-term benefits of saving for retirement need to be communicated to your employees. Employee communications must be well designed and easy to understand. Our communications materials include the following:

  • Materials written in plain language
  • Category headings which make it easy to scan for topics of interest
  • Visually-appealing pie charts and contribution tables

The Gabelli Funds 401(k) plan also includes:

  • Enrollment booklets
    Contain all pertinent plan information including: customized plan provisions, fund descriptions, fund performance returns, pie charts of asset allocation strategies, enrollment forms and personalized contribution charts built from census data.
  • Online Plan Administrators Guide
    Comprehensive and easy-to-use Plan Administrator's Guide for your reference.
  • Participant website
    Participants are able to check account balances, change investment elections, transfer between funds, reallocate balances and model sample loans at their convenience.
  • Participant Statements (example enclosed) Provide participants with useful information in an easy-to-read format, including:
  • Enrollment Presentations
    Using a variety of proven methods for increasing participation, a qualified retirement plan speaker can present the company plan to your employees. The presentation covers essential retirement plan and investing concepts, guides employees through the enrollment process, and explains plan features, such as loans, Voice Response, and the Internet. The presentation is appropriate for first time enrollment or re-enrollment.

Telephone Services

Interactive Voice Response (IVR) System
The Gabelli 401(k) Plan offers a fully automated, 24-hour, interactive voice response (IVR) telephone system that makes it easy for participants to track and manage their retirement accounts. Account information is updated daily. Through the IVR, plan sponsors can hear plan and participant-level information, as well. Individuals can follow the automated steps or opt to speak to a Client Service Associate for further assistance.

Features available to participants through the IVR:

  • English
  • Total accoun balances by fund and source
  • Vested account balances
  • Reallocate account balances
  • Transfer balances by percentage
  • Set/change contribution elections
  • Review fund performance
  • Amount available for a loan or hardship withdrawal (if applicable)
  • Model a sample loan/submit a loan request
  • Request an account balance statement

Client Service Associates
Our goal is to make Plan communications as simple and efficient as possible. We designed the IVR to be quick and convenient. Still, we recognize that not all customers are comfortable with automated telephone systems.

If you prefer to speak with a Client Service Associate, just press "0". If you are calling from a rotary telephone, stay on the line and someone will assist you. Client Service Associates are available Monday through Friday (except holidays), from 8:30a.m. to 7:00p.m. ET.

Also, our call documentation technology saves plan sponsors and participants from having to explain their situation each time they call. It provides the Client Service associate with a history of the conversations the participant had with other associates. All calls are recorded and kept indefinitely for auditing and security purposes.

Employee Statements

Participants receive easy-to-understand quarterly statements including account balances, fund performance, current investment direction and account activity.