ACA ONLINE
Access Control Advantage (ACA) is a complete defined contribution plan loan automation, 401k loan program for Recordkeepers and Plan Sponsors. ACA's patented and automated solution eases the burden of DC plan loan processing for Plan Sponsors while providing a better loan solution for Plan Participants.
ACA is an affiliate of Double Rock Corporation, which together with its subsidiary, Island Intellectual Property LLC, has more than ten years' experience in successful patent licensing. Island IP holds and manages patents, patents pending and other intellectual property and currently has more than twenty patents issued and patents pending. The ACA patented portfolio and related software enable licensees to offer powerful products and services that have been utilized by some of the nation's leading Recordkeepers. ACA is flexible and adaptable so that it can operate on all Recordkeeper software platforms, including the SunGard Omni and SunGard Relius platforms.
We make it easy to implement ACA, with two license options.
License ACA's patent portfolio and related software to provide a customized client solution:
€ Adapt product offering
€ Customize pricing and fees for your market
€ Control and tailor operational and IT functionality
€ Access future patents
Partner with an authorized ACA service provider to efficiently offer ACA to your clients:
€ Expand product offering
€ Decrease time to market
€ Leverage operations
€ Reduce up-front investment
Time for loan processing to evolve
When employee retirement plan loans first became available, there were numerous concerns:
For Recordkeepers, loan processing is cumbersome because it is manual and time-consuming, thus increasing workload and creating unprofitable tasks that hinder the Recordkeeper's ability to focus on business-building initiatives.
Plan Sponsors had concerns that traditional loan processing meant higher administrative costs due to inefficient payroll adjustments with a typical manual payroll deduction process. And with traditional loan processing, the entire loan amount leaves the plan immediately, reducing both assets under management and employee savings.
The number of Plan Participants requesting loans against their retirement savings is increasing. Today, more than 20% of Plan Participants have a defined contribution loan. This means that, without improvement to the loan processing administration, Recordkeepers and Plan Sponsors will be faced with increased workload, higher administration costs and less time to perform other more important tasks. In addition, Plan Participants will continue to lose out on valuable benefits.
Licensing ACA
By licensing ACA's patent portfolio, related software and know-how, you can eliminate the administrative burdens of managing inflexible traditional loans. Further, you can provide a unique and sensible loan solution for Plan Participants.
Specifically, ACA lowers plan administration costs, reduces participant borrowing, eliminates loan repayment via payroll processing, enables faster loan repayment, keeps more assets in the plans and encourages employee participation. Moreover, we have found that ACA loan balances are, on average, typically 25% lower than traditional retirement loans, and 30% of ACA loan repayments are higher than the minimum required.
ACA provides terminated participants the ability to pay their loan over the original term which can significantly reduce the incidence of loan defaults and leakage. According to the data compiled by the Pension Research Council, approximately 80% of terminated participants with traditional loans defaulted whereby only 25% of ACA terminated participants with loans defaulted in the time period of November 2004 to May 2011. The average traditional loan default amount was $6,540 and the average ACA default amount was $4,010, 38% lower. ACA helps mitigate this default risk.
ACA is an affiliate of Double Rock Corporation, which together with its subsidiary, Island Intellectual Property LLC, has more than ten years' experience in successful patent licensing. Island IP holds and manages patents, patents pending and other intellectual property and currently has more than twenty patents issued and patents pending. The ACA patented portfolio and related software enable licensees to offer powerful products and services that have been utilized by some of the nation's leading Recordkeepers. ACA is flexible and adaptable so that it can operate on all Recordkeeper software platforms, including the SunGard Omni and SunGard Relius platforms.
We make it easy to implement ACA, with two license options.
License ACA's patent portfolio and related software to provide a customized client solution:
€ Adapt product offering
€ Customize pricing and fees for your market
€ Control and tailor operational and IT functionality
€ Access future patents
Partner with an authorized ACA service provider to efficiently offer ACA to your clients:
€ Expand product offering
€ Decrease time to market
€ Leverage operations
€ Reduce up-front investment
Time for loan processing to evolve
When employee retirement plan loans first became available, there were numerous concerns:
For Recordkeepers, loan processing is cumbersome because it is manual and time-consuming, thus increasing workload and creating unprofitable tasks that hinder the Recordkeeper's ability to focus on business-building initiatives.
Plan Sponsors had concerns that traditional loan processing meant higher administrative costs due to inefficient payroll adjustments with a typical manual payroll deduction process. And with traditional loan processing, the entire loan amount leaves the plan immediately, reducing both assets under management and employee savings.
The number of Plan Participants requesting loans against their retirement savings is increasing. Today, more than 20% of Plan Participants have a defined contribution loan. This means that, without improvement to the loan processing administration, Recordkeepers and Plan Sponsors will be faced with increased workload, higher administration costs and less time to perform other more important tasks. In addition, Plan Participants will continue to lose out on valuable benefits.
Licensing ACA
By licensing ACA's patent portfolio, related software and know-how, you can eliminate the administrative burdens of managing inflexible traditional loans. Further, you can provide a unique and sensible loan solution for Plan Participants.
Specifically, ACA lowers plan administration costs, reduces participant borrowing, eliminates loan repayment via payroll processing, enables faster loan repayment, keeps more assets in the plans and encourages employee participation. Moreover, we have found that ACA loan balances are, on average, typically 25% lower than traditional retirement loans, and 30% of ACA loan repayments are higher than the minimum required.
ACA provides terminated participants the ability to pay their loan over the original term which can significantly reduce the incidence of loan defaults and leakage. According to the data compiled by the Pension Research Council, approximately 80% of terminated participants with traditional loans defaulted whereby only 25% of ACA terminated participants with loans defaulted in the time period of November 2004 to May 2011. The average traditional loan default amount was $6,540 and the average ACA default amount was $4,010, 38% lower. ACA helps mitigate this default risk.
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