Category: TPA

TPAs as Fiduciaries . . . of Their Own Plans

Posted on October 8, 2018, by Fred Reish in TPA. Comments Off on TPAs as Fiduciaries . . . of Their Own Plans

Heather Abrigo and I have begun writing articles for third party administrators, TPAs.  This first article is about issues arising from a TPA’s own plan, where it is, by definition, a fiduciary.  If you are interested in receiving future TPA articles, email





DOL Activity in 2012

Posted on April 30, 2012, by Fred Reish in 404a-5, 408(b)(2), Broker-Dealers, DOL Activity, fiduciary, Plan Sponsors, Registered Investment Advisers, RIA, Service Providers, TPA. Comments Off on DOL Activity in 2012

At first blush, it seems like 2012 is the year of plan disclosures and participant disclosures. The 408(b)(2) regulation is effective July 1, 2012, and the 404a-5 regulation follows two months later. However, there is more DOL activity than initially meets the eye.


More Issues Presented Under 408(b)(2) Regulations

Posted on September 26, 2011, by Fred Reish in 408(b)(2), fiduciary, Plan Sponsors, prohibited transaction, Recordkeeper, Service Providers, TPA. Comments Off on More Issues Presented Under 408(b)(2) Regulations

This is another in a series of articles on interesting issues presented under the 408(b)(2) regulation and its disclosure requirements.

It has become fairly common for plans to have expense recapture accounts (which are also known as ERISA budget accounts, PERAs—plan expense recapture or reimbursement accounts, and by a variety of other names). Typically, those accounts are established within a plan when a service provider (most often the recordkeeper) receives compensation through revenue sharing in excess of its reasonable charges. For example, if a reasonable charge for the recordkeeping/TPA services was $50,000 and the recordkeeper received $60,000 in revenue sharing, the excess amount would be deposited into the expense recapture account—thereby avoiding the prohibited transaction issue of excess compensation.

However, sometimes the recordkeeper/TPA places the money in its corporate account and tells the plan sponsor that the money can be spent for … Read More »


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