Note 4:Party-in-Interest Transactions
Party-in-interest transactions include those with fiduciaries or employees of the Plan, any person who provides services to the Plan, an employer whose employees are covered by the Plan, and an employee organization whose members are covered by the Plan, a person who owns 50 percent or more of such an employer or employee association, or relatives of such persons.
Investments in the ArcBest Corporation stock fund, which holds investments in the common stock of the Company, qualify as party-in-interest transactions. The ArcBest Corporation stock fund also holds cash equivalent investments in the State Street Institutional Liquid Reserves Fund administered by State Street Global Markets, LLC, and an affiliate of State Street Corporation. The Plan’s trustee and custodian, State Street Bank and Trust Company, is also an affiliate of State Street Corporation.
CapTrust Partners, LLC provides investment consulting and investment management services for the plan. CapTrust Partners, LLC customizes the age-based target retirement allocation utilizing the investment holdings of the Plan for participants that choose the PortfolioXpress service. During 2022 and 2021, the Plan paid CapTrust Partners, LLC a total of $172,657 and $147,790, respectively for these services.
The Plan invests in certain funds managed by the Plan recordkeeper, Transamerica Retirement Solutions, LLC (“Transamerica”), or issued by Transamerica Life Insurance Company, which are affiliated companies owned by AEGON N.V. The Diversified Stable Pooled Fund is managed by Transamerica and the SecurePath for Life investment options are variable annuity funds issued by Transamerica Life Insurance Company; therefore, transactions with these funds qualify as party-in- interest. National Financial Services and Mid Atlantic Capital Corporation provide securities brokerage services to the Plan. All revenue sharing is rebated to the Plan and Transamerica’s annual administrative fee of 0.06% for 2022 and 2021, plus the 0.04% in additional qualified annual expenses are charged directly to the Plan. The Plan paid $539,823 and $683,527 of transaction processing and account administration fees, not covered by revenue sharing, to Transamerica during 2022 and 2021, respectively, which are included in administrative expenses.
Individually immaterial expenses paid by the Plan to parties-in-interest aggregating to $49,562 and $44,856 were recorded in administrative expenses for 2022 and 2021, respectively. The Company provides certain administrative services at no cost to the Plan.
Note 5:Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the participants’ account balances and the amounts reported in the financial statements.
Note 6:Subsequent Events
On February 28, 2023, the Company sold its wholly owned subsidiary, FleetNet America, Inc.
Effective June 1, 2023, the Company changed its 401(k) recordkeeper from Transamerica Retirement Solutions, LLC to Charles Schwab. Beginning on May 22, 2023, the Plan became subject to a Securities and Exchange Commission Regulation BTR blackout period. The blackout period is required due to the need to administratively process the migration of the Plan from the recordkeeping platform of Transamerica Retirement Solutions, LLC to the record keeping platform of Charles Schwab. During the blackout, Plan participants were prohibited from performing certain functions within the Plan, including (i) changing investment elections for future contributions; (ii) transferring funds among investment options; and (iii) requesting a Plan loan, distribution, or withdrawal. The blackout period ended June 15, 2023.
Effective June 1, 2023, the Plan was amended to merge the MoLo Solutions 401(k) Plan (the “MoLo Plan”) into the Plan. The related participants and plan assets of the MoLo Plan were transferred to the Plan during June 2023.