A Retirement Plan TPA Warning Sign

October 25, 2012 at 12:33 am Leave a comment

What are the warning signs of a problem TPA?  Recently, a transcript was forwarded to me from a webinar that illustrated such a warning sign.  The webinar, the firm employing the administrator, and the individual will not be mentioned in this article since the information is not needed to illustrate my point and is readily available in the transcript which is available online without restriction by the industry organization that gave the webinar earlier this year.  This unenrolled administrator suggested illegally back-dating a plan document.  Although there are certain rare circumstances under which a corrective amendment could possibly be applied retroactively, if your administrator routinely recommends a retroactive amendment or asks you to backdate amendments to the plan document, that is a major warning sign of an unethical administrator.  If  you desire to do so, such administrators can be reported to the IRS for their actions.  I would question why a firm would retain such an employee and would not be concerned about her actions reflecting badly on the firm’s image and the potential liability issues with her actions.  As a consumer, I would conclude they likely approve of her actions.

For additional tips, I recommend my book, A Short Guide to Finding a High Value, Low Fee Third Party Administrator (TPA) for Your Retirement Plan, available at amazon.com and https://www.createspace.com/3964647.  My goal is to help plan sponsors make the best decision they can when selecting a  TPA.  I understand how difficult a decision this can be when you do not know what skills and credentials to look for.  I have created this book to ease the process and enable plan sponsors to make good choices through my insights from working in the industry.

Thanks for reading and have a wonderful day!   Please be sure to sign up for my blog and follow me on twitter.

I am not selling my own or any one else’s TPA services through this blog or my book.

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Retirement Plan TPA Internal Controls Part I

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Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

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