PENSELECT.COM

Advisor Accounts Transition Status

This site provides advisors with account updates as they transition from Foresters Financial to the new PenselectSM recordkeeping platform provided by PenServ Plan Services, Inc. Save this page to your Favorites menu for frequently updated information.

PenServ Plan Services, Inc.
For more than 30 years, PenServ has provided recordkeeping, administrative and consulting services to employers, employees and financial institutions, working closely with financial advisors to ensure compliance for governmental 403(b), 457(b), 501(c)(3), and church plans. 

We have been guided by three essential elements deeply rooted in our history and corporate culture: knowledge, integrity, and commitment to our clients.  Our ongoing success is guided by the fostering of each element, at all times. PenServ is committed to supporting financial advisors that serve our schools, religious institutions, and foundations in all their retirement needs.

Accounts Timeline

January 27, 2020

New product enrollment begins

January 27, 2020

New Accounts available on PenServ website

January 22, 2020

Assets transfer from FFS to Matrix Trust

January 17, 2020

PenServ communication to participants

PenServ communication to participants regarding the enrollment process and creating a new account.

January 10, 2020

Plan Sponsors Packet Mailed Out

The Plan Sponsors (Employers) Questionnaire and FAQ Packet regarding the upcoming conversion date mailed out. To view the documents, see the Message Board below.

January 8, 2020

TPA Reminder

TPA reminder of January 22 change, confirmation of instructions.

January 7, 2020

TPA Questionnaire Mailed Out

The TPA Questionnaire for data exchange and funding mailed out. For more information, see the Message Board below.

December 20, 2019

Webinar: Production Enrollment and Website Use

Webinar for Advisors who missed the 12/18/2019 seminar.

December 18, 2019

Webinar: Production Enrollment and Website Use

December 11, 2019

Transition Notice, Assignment Letter, Matrix Custodial Agreement Mailed Out

Recipient: Districts without TPA

December 11, 2019

Transition Notice, Assignment Letter, Matrix Custodial Agreement Mailed Out

Recipient: TPAs that did not attend group or individual calls

December 10, 2019

Plan Participants Loan Repayment Notification Packet Mailed Out

To view the documents, see the Message Board below.

December 6, 2019

New product release

December 5, 2019

Advisor confirmation of contact information generated

November 29, 2019

Assignment Letter, Matrix Custodial Agreement Mailed Out To 457 Participants

November 29, 2019

Assignment Letter, Matrix Custodial Agreement Mailed Out To 403(b) Participants

October 28, 2019

Penselect Website opened to Advisors

Sales staff will be available to assist advisors with questions.

Message Board

Select your current provider below for messages and updates.

Plan Participant's Letter and Online Enrollment Guide Mailed Out January 16, 2020

On January 16, 2020, the introduction letter and Online Enrollment Guide was mailed to plan participants.

Plan Sponsors (Employers) Letter, Questionnaire and FAQs Mailed Out On January 10, 2020

On January 10, 2020, PenServ Plan Services mailed out the Plan Sponsors (Employers) cover letter, questionnaire and FAQs. You can view those document by clicking below.

Plan Sponsors Cover LetterPlan Sponsors Questionnaire

Cover Letter and Questionnaire Mailed Out To TPAs on January 07, 2020

On January 07, 2020, PenServ Plan Services mailed out the questionnaire for data exchange and funding for TPAs to complete. The mailed document can be seen below.

TPA Cover Letter and Questionnaire

Plan Participants Loan Repayment Notification Packet Mailed Out On December 10, 2019

To view the documents mailed out, click the document link below.

Plan Participant Loan Repayment Notification Packet

Will contributions continue as usual following the conversion?

Yes. Representatives from FFS and PenServ have been communicating with the TPA’s associated with each Plan to ensure transactions continue as usual.

When will the Delaware Funds be transferred to the new Custodian?

Conversion of accounts from Foresters Financial Services (FFS) to Matrix Trust is scheduled for January 22, 2020. Until that time, all transactions will be handled as usual by FFS.

When will communication be made with the School Districts?

Communication is scheduled for the first full week in November. A copy of the communication will be posted to this site at least two days prior to the mailing.

What should advisors be doing in the meantime?

It is business as usual. Until the recordkeeping and custodial services are transitioned to PenServ and Matrix, respectively, the current processes to transact business will remain the same. Contributions, redemptions, loans, etc. will continue to be serviced by Foresters Investors Services in the same manner as they were previously. Advisors should continue servicing their relationships with school districts and third-party administrators. Training on PenServ’s platform will be coordinated through the branch managers.

What communication will be sent to participants?

Foresters and PenServ are preparing a mailing to be sent out in mid-November which will include a new Custodial agreement and a welcome letter from PenServ.

What paperwork will participants need to complete?

New paperwork will not be required to complete this transfer; their accounts will be assigned to Matrix as Successor Custodian and to PenServ as the new recordkeeper. Several days before the January 10 transfer date, participants will receive an additional mailing explaining the process for accessing the PenServ website and the timeline for the transfer of their account balances.

Will a fee based advisory solution be available?

PenServ is working with Cetera and Macquarie on the details of an advisory product to be announced in mid-December. Specific dates, along with product information will be provided on this website.

Macquarie Investment Management / Foresters Investment Management Overview

Macquarie Investment Management announced it has entered into a definitive agreement to purchase the assets related to the mutual fund management business of Foresters Investment Management Company, Inc., the investment advisor of the First Investors funds, with approximately $US12.3 billion in assets under management. The acquired assets will become part of the Delaware Funds® by Macquarie family of funds. In addition, Macquarie Investment Management has been chosen by Foresters to manage a portion of Foresters’ general account supporting its life insurance business. The transaction is expected to close in the fourth quarter of calendar year 2019.

When is the deal expected to close?

Early October 2019.

Will the new funds be branded Delaware Funds by Macquarie? If so, when?

Yes. Upon close of the transaction, a significant number of new funds will join the Delaware Funds by Macquarie platform.

Will accounts coded with NAV privilege transfer to Delaware Funds with that NAV privilege?

Yes.

Does Delaware Funds code an account with an NAV privilege and, once there, it is always there?

Yes.

If so, will former representatives and employees retain the NAV privilege on their accounts, for subsequent purchases to those accounts?

Yes.

What will the loads on Class A shares look like?

It is our intent to utilize the current Delaware Funds Class A share load policy for the new funds. The policy is contained in the registration statements recently filed with the SEC. However, it is subject to approvals and it is possible that the contents of the registration statements could change.

How often do we pay out our 12b-1 fees?

Monthly.

What will happen to the existing Class B shares?

Foresters filed a sticker and converted all outstanding Class B shares to Class A shares on June 14.

Will end-clients receive a quarterly performance report for Q2?

For second-quarter reporting, Foresters (through Pershing) will issue a statement through June 21, and Cetera will issue a statement for June 22–30. There will not be a Quarterly Performance Report issued for this period.

Will any of the current sub-advisors be retained by Macquarie to sub-advise Delaware Funds?

A number of new Delaware Funds corresponding to the First Investors funds are currently in the registration process. Information on the sub-advisors to those new Delaware Funds will be available in early July when the registration process is completed.

Does Delaware Funds maintain accounts that are either associated to Delaware Distributors as a limited purpose broker/dealer and/or have no broker/dealer listed? For those accounts, can a client continue to purchase shares or are they hold and redeem only?

Delaware Distributors is not listed as the dealer on accounts. For accounts that do not have a dealer, the dealer name is “No Broker of Record.” Shareholders can continue to make purchases into accounts with No Broker of Record.

What will the Foresters 403(b) / 457 businesses look like moving forward?

As of now, it is business as usual – the only anticipated change will be that as of late June, Cetera’s company name will appear on advisors’ business cards. 403(b) and 457 plan contributions, redemptions, loans, and so on will continue to be submitted to the First Investors funds and be serviced by Foresters Investors Services in the same manner as they were previously. Foresters will continue to provide additional information on the 403(b) / 457 business throughout the summer and leading up to the transition to Delaware Funds® by Macquarie scheduled for October.

For clients who have accounts, are they able to call in via phone and request distributions from accounts, or is a distribution form always required?

For non-retirement accounts, please call the Service Desk at 1-800-362-7500* and ask for phone redemption privileges for the specific account. Once this happens, requests for distributions can occur via phone. For retirement accounts, requests for phone redemption privileges for the account must be provided in writing. If you call the Service Desk, instructions on where to fax the written request for phone redemption privileges will be provided. Once the request is received in good order, phone redemption privileges will be granted within 1-2 business days. This phone number does not apply to existing First Investors funds and will not apply to the new Delaware Funds until the funds convert to the BNY Mellon Transfer Agent. The phone number that will be used at that time will be 800-423-4026.

What is the minimum investment monthly for Delaware Funds?

The Delaware Funds SAI and/or prospectus states that subsequent investments must be for $25 or more for electronic fund transfers, direct deposit purchase plans, automatic investment plans, IRAs, Uniform Gifts/Transfers to Minors Act accounts, and Coverdell Education Savings Accounts. Otherwise, for Class A and Class C shares, subsequent investments can be made for as little as $100 (for example, by check).

If a client uses Foresters’ current Cash Management Fund, which is then instructed to forward premiums to FLIAC for payment of life policies, or for payment toward outstanding loans, does the same standard still apply once merged with Delaware Funds?

No, we are not able to forward payments for life insurance policies from our mutual fund accounts.

If a client has $100,000 in a First Investors fund, and an additional $150,000 to put into a Delaware Fund, would the client then get the $250,000 breakpoint?

As of right now, First Investors funds are not eligible for rights of accumulation (ROA) or letters of intent (LOI) with Delaware Funds. However, once the First Investors funds become part of the Delaware Funds® by Macquarie family of funds, then they would be eligible for ROA.

What is the process for mutual fund conversions / allocations?

All First Investors funds (including the Life Series Funds) will become new Delaware Funds upon the closing of the transaction and will be added to the Delaware Funds by Macquarie platform. The funds will be managed by Macquarie portfolio managers or sub-advisors.

Will cost basis continue to be provided?

Following the closing of the transaction, cost basis information will continue to be made available in a similar manner to how it was provided by First Investors funds and Delaware Funds by Macquarie, respectively, prior to the transaction.

When the First Investors funds merge into Delaware Funds, will there be a taxable event?

No, the merger of the First Investors funds into the Delaware Funds will not be a taxable event to shareholders. While the mergers themselves are nontaxable, there will likely be significant portfolio turnover within the portfolios, which could trigger realization of capital gains for fund shareholders.

If a money-line client currently invests on a biweekly basis to line up with their payroll frequencies at work, will this same process transition once the merger occurs?

Currently, the Delaware Funds by Macquarie form lists the 1st, 5th, 10th, 15th, 20th, and 25th of the month as dates available for a systematic purchase. A shareholder can select multiple days. The funds do accept days of the month other than those stated, and we can accommodate up to four systematic transactions a month per fund.

Does Delaware Funds have a money market fund?  If not, what should a client do if they use one?

No, we do not have a money market fund, but we anticipate acquiring the First Investors money market fund – the Government Cash Management Fund – upon closing.

What will happen with scheduled RMDs and systematic investments?

These will be carried over as part of the conversion. It is our intention to maintain previously established required minimum distributions (RMDs) and systematic investments. However, there may be certain systematic investment processes unique to First Investors that will need to be handled in an alternative manner going forward. Account owners will be advised accordingly if an alternative investment method is required for their account.

Does Delaware Funds have “e-signature” capabilities for transactional business?

We do not offer e-signature capabilities.

Does Delaware Funds have DST Vision? If not, will it be available at some point?

No. Existing Delaware Funds are not on DST Vision and we do not anticipate making Delaware Funds available on DST Vision. Our transfer agent is BNY Mellon. BNY Mellon offers a web-based service called Advisor Central, where our fund and account information is available to financial advisors. First Investors funds currently make information available to advisors using DST Vision. Once the First Investors funds merge into the new Delaware Funds, at the closing these new Delaware Funds will continue to be available on the DST Vision platform until such time that the funds convert to the BNY Mellon platform.

Are there any substantial issues that we know of that BNY cannot do that DST can?

First Investors funds are on an in-house proprietary transfer agent system. First Investors funds currently provide limited data to DST Vision. Existing Delaware Funds are on the BNY transfer agent system and BNY offers a similar online service called Advisor Central. From a transfer agent servicing point of view for direct accounts, there are no substantial differences between DST and BNY.

What is happening to Foresters’ current Premier Program?

Delaware Funds® by Macquarie Premier Models, launched in June, is expected to be offered as a replacement to the current Foresters Premier Program The program will replicate the existing Foresters models, using current Delaware Funds by Macquarie mutual funds and First Investors mutual funds in the following strategies:

• Delaware Premier Strategic Core Allocation – Conservative
• Delaware Premier Strategic Core Allocation – Moderately Conservative
• Delaware Premier Strategic Core Allocation – Moderate
• Delaware Premier Strategic Core Allocation – Moderately Aggressive
• Delaware Premier Strategic Core Allocation – Aggressive
• Delaware Premier Strategic US Core Allocation – Conservative
• Delaware Premier Strategic US Core Allocation – Moderately Conservative
• Delaware Premier Strategic US Core Allocation – Moderate
• Delaware Premier Strategic US Core Allocation – Moderately Aggressive
• Delaware Premier Strategic US Core Allocation – Aggressive
• Delaware Premier Strategic Core Allocation with Alternatives – Conservative
• Delaware Premier Strategic Core Allocation with Alternatives – Moderately Conservative
• Delaware Premier Strategic Core Allocation with Alternatives – Moderate
• Delaware Premier Strategic Core Allocation with Alternatives – Moderately Aggressive
• Delaware Premier Strategic Core Allocation with Alternatives – Aggressive
• Delaware Premier Strategic Tax-Exempt Allocation – Conservative
• Delaware Premier Strategic Tax-Exempt Allocation – Moderately Conservative
• Delaware Premier Strategic Tax-Exempt Allocation – Moderate
• Delaware Premier Strategic Tax-Exempt Allocation – Moderately Aggressive

Is there a track record for the new solution?

Our models will be starting a new track record; however, our Global Multi Asset Allocation team has a 20-plus year track record of building model portfolios for clients and has approximately €3.2 billion in AUM.

Can clients continue to cross-invest from bond funds (municipal and taxable) into equity funds, taking the income from the monthly bond funds and reinvesting into an equity fund as a strategy?

Yes.

No Information for Cetera Accounts at this Time.

Please check back for future updates and messages.