CASS INFORMATION SYSTEMS, INC.
401(k) PLAN
Notes to
Financial Statements
Following is a summary of changes in the fair value of the insurance company general account, the only plan
asset valued using Level 3 inputs, for the years ended December 31, 2019 and 2018:
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2019
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2018
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Balance, beginning of year
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$
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2,028,598
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2,015,027
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Realized and unrealized gains (losses) relating to instruments still held at the reporting
date
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48,261
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(11,191
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)
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Interest credited
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26,466
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19,265
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Purchases, sales, issuances, and settlements (net)
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(197,191
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)
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5,497
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Balance, end of year
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$
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1,906,134
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2,028,598
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NOTE 4 RELATED PARTY TRANSACTIONS
Certain plan investments are units of pooled accounts or collective trust funds managed by Principal Life Insurance Company or affiliates thereof. Principal
Life Insurance Company is the Custodian as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Plan for
the investment management and recordkeeping services amounted to $31,986 and $35,930 for the years ended December 31, 2019 and 2018, respectively.
The Plan invests in common stock of the Company. At December 31, 2019 and 2018, the Plan held 22,068.3182 and 34,246.5104 shares of Company common stock,
with fair values of $1,274,225 and $1,812,325, respectively. During the years ended December 31, 2019 and 2018, the Plan received cash and stock dividends totaling $32,462 and $337,539, respectively, on shares of Company common stock.
NOTE 5 PLAN TERMINATION
Although it has not
expressed any intent to do so, the Plan Administrator has the right under the Plan to terminate the Plan subject to the provisions set forth in ERISA. In the event of plan termination, participants become 100% vested in their accounts. The Company
may elect to have all assets transferred to another qualified plan in which all participants who would have otherwise received a distribution will have an interest, and each persons interest will be nonforfeitable as to amounts attributable to
assets transferred on his or her behalf.
NOTE 6 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 participants
account balances and the amounts reported in the statements of assets available for benefits.
NOTE 7 FEDERAL INCOME TAXES
The Internal Revenue Service issued its latest determination letter on August 8, 2014, which indicates the prototype plan document adopted by the Plan
qualifies under the provisions of Section 401(a) and the trust is exempt from federal income taxes under the provisions of Section 501(a) of the Internal Revenue Code, as amended. While various amendments have been made to the Plan since
2014, in the opinion of the Plan Administrator, the Plan and its underlying trust have operated within the terms of the Plan and remain qualified under the applicable provisions of the Internal Revenue Code.
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