Third Party Administrator (TPA)
Impact of New 403(b) Regs
By Alvin Sandrini
When selecting a TPA, you may want to consider asking some of the following questions and considering factors in each response.
1. Does the TPA offer common remitting services? If so, here are some questions to consider:
a. Years of experience?
b. Timeframe for processing premium?
c. Interest or non-interest bearing depository account?
d. Is the depository account audited by an independent third party?
e. Is an error ratio published?
2. Does the TPA offer a web site?
a. Who has access-employer, participant and/or financial professional?
b. What information is available?
c. What transactions can be performed online?
i. Allocation changes
ii. Name changes
iii. Billing
iv. Vendor changes
3. What educational programs are available to participants?
a. In person training’
b. Printed material
c. Webinars
d. E-mail
4. What training is provided to the employer in conjunction with the TPA?
a. In person training
b. Procedural manual
c. Webinars
d. Monthly or quarterly newsletters
5. Does your state require a TPA license?
a. Is their license active
b. Bonding
c. Errors and Omissions Insurance
6. Regulatory/Compliance
a. What is the procedure for notifying the employer of regulatory changes?
b. Who performs the regulatory/compliance functions?
7. General questions to ask
a. Number of employees
b. Average tenure of employees
Information on Third Party Administrator provided by Great American Financial Resources Inc.
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