Client Case Studies
BenePay Reduces 401k Distribution Processing Costs
In the world of pensions and plan benefits such as 401Ks, distribution processing (that is, cutting a check to a plan participant) has always been onerous. From collecting the participants' signed forms to properly calculating and withholding taxes, to accounting for outstanding loans, Plan Sponsors and TPAs (Third Party Administrators) are continually seeking an easier, more cost effective distribution management solution. For over 10 years financial services provider PenChecks has provided outsourced distribution processing, 401k allocations, and check writing. But their process was paper-based and very labor intensive, thus limiting their ability to grow to meet the market demands.
Silicon Space built the BenePay system which provided an e-finance software solution, allowing PenChecks' clients the ability to request, manage, and fund benefit plan distributions from a highly secure, easy to use finance portal and website. On the back-end, the system's accounting and reporting functions provide PenChecks staff and management the ability to process more transactions per month.
Through Silicon Space, BenePay is now simultaneously improving margins and enabling PenChecks' rapid growth from a service provider to a technology firm.