Service providers take care of the nuts and bolts and fine details of running a retirement plan. So what are plan sponsors looking for in a third party administrator? A recent blog entry offers a look.
In “10 Things to Look for in Retirement Plan Administration,” Kushner & Company suggests factors that plan sponsors and employers can consider in choosing a TPA. But this information also gives TPAs an idea of services and functions potential clients may be looking for.
Expertise
There are a variety of factors to consider regarding the TPA’s qualities, they suggest, such as the experience and knowledge it offers, as well as its reputation.
- Does it have a record in performing retirement plan administration, especially regarding plans like yours?
- Does the TPA have experience working with the IRS and the Department of Labor?
- Does the TPA evince an understanding of ERISA and other regulations relevant to running a retirement plan?
- Do its staff members have certifications such as Qualified 401(k) Administrator (QKA) or Qualified Pension Administrator (QPA)?
- What do reviews and/or testimonials say about the TPA?
- Are there any recommendations about the TPA?
Services
Factors to consider regarding services the TPA offers include:
- Can the TPA handle the type of plan you have or are considering?
- What services does the TPA offer?
- What does the TPA do to provide accurate and high-quality service?
- Does the TPA advocate for its clients?
- Does the TPA effectively protect the employer from the complexities of running a plan?
- Does the TPA apply a “one-size-fits-all” approach to providing services, or do they tailor services to meet clients’ unique needs and goals for their retirement plan?
- How does the TPA protect participant data and financial information?
Accessing the TPA
A potential client can consider how it can access the TPA by asking these questions:
- Where is the TPA located?
- How available is the TPA for in-person meetings and consultations?
- How well does the TPA hold virtual meetings?
Relationships
There are questions a plan sponsor or employer can ask regarding the way the TPA interacts with a client and other professionals with which it can work to provide services.
- How does the TPA build relationships with its clients?
- How does the TPA build relationships with other service providers?
- Does the TPA provide a client with a dedicated account manager?
- How responsive is the TPA?
- How well does the TPA communicate in response to inquiries and concerns?
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