10 Things to Look for in Retirement Plan Administration
401(k)’s and other retirement plans are extremely technical. But by working with a highly skilled Third Party Administrator (TPA), employers can be supported in these tasks, assured their plan is running smoothly, and in compliance with ERISA and IRS regulations.
Choosing the right TPA for your retirement plan is a critical decision that can significantly impact your plan’s success. Here are key factors to take into consideration when choosing a TPA.
- Expertise and Experience
- Look for a TPA with a proven record of retirement plan administration, especially with plans of a similar type and size to your plan or organization.
- What relevant industry certifications do the individuals at the TPA have such as Qualified 401(k) Administrator (QKA) or Qualified Pension Administrator (QPA) from the American Retirement Association.
- References and Reputation
- Be sure to read reviews and testimonials or seek recommendations from other plan sponsors or financial advisors. Kushner & Company publishes some of their client testimonials.
- Compliance and Regulatory Knowledge
- Ensure the TPA has a deep understanding of ERISA and other relevant retirement plan regulations.
- Be certain that your retirement plan administrator has experience working with the IRS and DOL
- What Services Do They Offer
- Determine whether they can handle the specific type of plan you have or are considering.
- Assess the range of services offered, such as plan design, compliance testing, contribution allocations and calculations, participant notices and employee eligibility and vesting determinations.
- Consider the location of the retirement plan administrator and their availability for in-person meetings and consultations.
- Are they also proficient and successful doing virtual meetings when in person isn’t feasible.
- Are they a “one-size-fits-all” shop or do they believe in tailoring services to meet the unique needs and goals of your organization and retirement plan.
- Security and Data Protection
- Ask about security measures they have in place to protect sensitive participant data and financial information.
- Plan Sponsor Support
- Do they advocate for their clients, supporting them in taking the complexity out of retirement plan administration, allowing the employer to focus on running their business.
- How do they build relationships with their clients, recordkeepers and financial advisors.
- Responsiveness and Communication
- Will you have a dedicated account manager or will you reach a call center when you contact the TPA.
- Evaluate their responsiveness and how well they communicate to inquiries and concerns.
- High Standard of Service
- Ask what steps the TPA takes to deliver consistently high standards of service and accuracy.
Still Need Help Selecting the Right Retirement Plan Administrator?
Choosing the right TPA for your retirement plan is essential to worry-free administration and positive outcomes for your participants. Take the time to thoroughly vet prospects before making your decision. For more than 40 years, Kushner & Company has made the administration of successful retirement plans easy for our clients.
Our team of retirement plan specialists provide extensive expertise, offering complete objectivity and comprehensive solutions, taking the complications out of administering retirement plans. So, if you’re ready for stress-free retirement plan administration, we encourage you to contact our experienced team today.