What is a TPA?

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Third-Party Administrator (TPA) - What is a TPA?

Definition – A third-party administrator is an organization that manages many day-to-day and annual aspects of your employee retirement plan. A good TPA helps to keep your retirement plan in compliance with all Internal Revenue Service (IRS) and Department of Labor (DOL) regulations. A good TPA is your best support in maintaining your plan’s compliance!

As a Third-Party Administrator (TPA), the staff of Pension Planning Consultants (PPC) assist the Plan Sponsor (typically the Employer) in fulfilling duties required under both the terms of the plan and governmental agencies. At PPC the administrators and actuaries typically provide services which include, but are not necessarily limited to:

  • Assist and communicate with other plan partners (such as financial advisors, investment provider/recordkeepers and CPAs) in regards to their clients’ retirement plans;
  • Design, produce, amend and restate (update) the required retirement plan document and other retirement plan materials;
  • Create basic annual fee disclosures and plan notices;
  • Aid in the transition (if applicable) from the plan’s current investment platform to a newly selected investment platform;
  • Reconcile at least annually participant accounts against employer’s payroll;
  • Provide annual trust accounting of participant accounts;
  • Prepare employer and employee benefit statements;
  • Prepare individual benefit calculations;
  • Assist in processing all types of distributions from the plan;
  • (If applicable) Prepare loan paperwork for plan participant and trustee/fiduciary execution;
  • Conduct annual compliance testing of the plan to gauge the plan’s compliance with all IRS non-discrimination requirements as well as plan and participant contribution limits;
  • Provide calculation and allocation of employer contributions and forfeitures;
  • Provide calculation of and maintain participant vested percentages;
  • Prepare annual governmental returns and reports including the Form 5500 and applicable schedules which are required by the IRS, DOL or other government agencies;
  • (If applicable) Assist in plan audit;
  • Provide other miscellaneous duties as required by the employer/plan sponsor/Fiduciary.