But How Will We Have Any Customers? Part II of II

July 19, 2013 at 4:41 pm Leave a comment

But how will we have any customers?  In my last post, I discussed how this question came up at a recent ethics seminar.  As someone who has worked in retirement plan compliance for decades, I find the idea that all retirement plans are “screwed up” or “messed up” to be ridiculous.  There are clearly bad TPA’s, and I recommend purchasing my book for help in deciding on a TPA.

A TPA firm that does not actively pursue these challenging cases is likely a big factor in the quality of the plan.  A plan sponsor needs strong internal controls in order to safe guard the plan, but the same also applies to the TPA.  There are a lot of TPA’s that do not check the quality of their administration, do not prevent circumvention of procedures, and have no safe guards to protect confidentiality.  I have numerous examples from personal experience that range from inept administrators who sent incomplete tax forms and illegal amendments to management who incorrectly “fixed” work.

One example is an administrator who was instructed by her supervisor to follow the terms of the loan documents and mailed incorrect work with merely an incorrect written note to the file asserting that the loan documents did not contain the information needed.  This employee never reviewed the documents as instructed or approached her superior regarding her lack of understanding of the loan documents which did contain the necessary information.  The key is that the organization had no procedure for employees who circumvented internal review procedures, and incorrect reports were received by the client.  This example illustrates an organization that clearly does not care about their reputation or their clients.

Unfortunately, this example is not unusual for the organizations they worked for, the individuals themselves or the industry.  Small TPA’s rarely have the appropriate internal controls and procedures in place to prevent these problems. Often times, hiring and promotion are done on a feeling or perception rather than facts or merit. How to find the exception who will actually take care of you and your plan rather than just saying they will?  I recommend picking up a copy of my book from one of the websites listed below.

Thanks for reading and have a wonderful day!  Please sign up for my blog and follow me on twitter @ChristineGurney.  Please like my facebook author page athttp://www.facebook.com/ChristineGurneyHsiung.  If you have not already done so, please check out purchasing my book on amazon at http://www.amazon.com/Short-Guide-Finding-Value-Administrator/dp/147912821X/ref=sr_1_1?ie=UTF8&qid=1354850566&sr=8-1&keywords=christine+gurney+hsiung or from the publisher at https://www.createspace.com/3964647.

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Happy 4th of July! Compensation and Your Retirement Plan

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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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