The Preneed Trust Accountability Act was a top legislative priority for NYSFDA and PrePlan in 2019 and was signed into law on December 12, 2019. The law establishes a set of financial best practices for preneed administrators. All preneed administrators are now required to undergo an annual audit by a New York State licensed CPA to verify their preneed accounts are being maintained and funds are invested in accordance with law.
PrePlan had undergone this type of annual audit for numerous years prior to this law and will continue this process. The passage of this law continues to be of utmost importance to ensure that New York State funeral directors are aware of the practices of their selected preneed administrator and their dedication to the adherence of accepted financial practices and compliance of laws.
In addition, the law includes a provision to allow funeral directors to receive a portion of the 75-basis point administrative fee. PrePlan immediately implemented a Patronage Program to recognize our participants for the administrative time required to create and maintain accounts. We’re currently in our 4th year of recognizing our firms with this program.
The list below indicates the number of points you will receive based on the cumulative dollar value of your preneed funds invested with PrePlan.
2023 Patronage Program
- Up to $2.5M = 1 Basis Points Earned
- $2.5-5M = 5 Basis Points Earned
- $5-20M = 7.5 Basis Points Earned
- $20-50M = 10 Basis Points Earned
- $50-100M = 15 Basis Points Earned
- $100-200M = 20 Basis Points Earned
- $200M+ = 25 Basis Points Earned (maximum allowable by law)
Based on the calendar year 2022, PrePlan will determine participants’ average annual quarterly fund balance. Based on that dollar value, participants will earn up to 25 basis points patronage. The patronage will be distributed via check by April 1, 2023.
Reminder: If you opted out of receiving a Patronage check in the past, you will not receive one this year. If you would like to change your preference or opt out, please contact us at 800.577.3752 or firstname.lastname@example.org.
We’re proud to support you and your honorable profession for the past 35 years! Thank you for your trust and confidence. We’re here for you and thanks to our relationship with NYSFDA, will continue to advocate legislatively for you and the families you serve!