Ready To Trade Procedure for Manager Approval

Associate completing the initial distribution review must flag the PC record by selecting "Yes" in the "Manager Approval Required" field for:

•         Cash distribution requests exceeding $75,000

•         Rollover requests exceeding $200,000

Ready to Trade Review Phase

•         Associates shall highlight in yellow any cash distributions exceeding $75,000 or rollover requests exceeding $200,000.

•         Associate shall notify the on duty supervisor with participant details.

 This highlights the requirement for management's additional review prior to processing authorization on the Ready to Trade file.

Management Approval Process

Upon review, the manager shall:

•         Enter the Ready to Trade date in the PC record

•         Document approval by adding a status note in the PC record that includes their initials

•         Verify the request meets all processing requirements (see below for full procedures)

This standardized procedure ensures proper oversight and documentation of high-value distribution requests through a consistent approval workflow.

Manager Approval Steps

1. Verify if all security requirements have been met based on request type and method of submission. Refer to this Solutions article: Security Verification Requirements
2. Verify employment status to determine if distribution type is appropriate for current employment status. For example, is the participant requesting a hardship but they are now terminated and no longer eligible for the hardship?
3. Verify that vesting for distribution is correct.
4. Confirm if there is any missing documentation that may be required for their distribution before the request can be processed, such as a self-certification form if it is a hardship request or a spousal waiver form if the account contains a money purchase source that is eligible to be distributed.

If any of the above items are not in good order, the request cannot be approved. The manager completing the review should notify the associate completing the Ready to Trade file that the distribution needs either additional information or should be cancelled depending on the issue.