9 things to keep in mind when selecting a third-party administrator

Property Casualty 360
In this article, Tess Gee offers nine factors for employers to consider when selecting a third-party administrator (TPA) for ERISA plans. Since 1974, business owners who establish retirement or health insurance plans to provide benefits for their employees have been regulated by ERISA. "Enlisting the appropriate criteria to find and retain the right third-party administrator (TPA) can go a long way in ensuring the smooth and cost-effective operation of the plan," Gee said. "Failing to engage in a prudent process to select the appropriate TPA for an ERISA plan can result in dire consequences: plaintiffs, including the DOL, have not been shy about suing insurers and TPAs alleging violations under ERISA and seeking maximum damages." Gee suggests taking into consideration the TPA's qualifications, quality of services offered and the reasonableness of its fees when making a selection.
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