Investigation and audit from the U.S. Department of Labor and the IRS, respectively, are possibilities that all TPAs need to be prepared for and ready to handle. These investigations can lead to plan liability or can hurt a TPA’s reputation. Who wants to go to the TPA who could not handle being investigated?
So here are some red flags to watch out for and help prepare your plan against. The IRS is especially wary of plan termination and acquisitions while the DOL is known to investigate whether a plan is properly bonded by an ERISA Fidelity Bond, has received numerous plan participant complaints, and errors on the Form 5500. Click here to learn more areas in which the IRS and DOL are known to investigate more thoroughly.
Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance which includes cyber liability insurance at no extra cost. Pension Professionals can enroll in The Partnership Account® for Pension Professionals. The Partnership Account is a business arrangement between third party administrators and Colonial Surety that simplifies the ERISA bonding process. It can help increase productivity for partners while lowering costs for their plan sponsors.
Pension professionals partner with Colonial Surety to consolidate their plan sponsors’ ERISA bonds into one location and ensure they are United States Department of Labor compliant. Colonial is rated “A” Excellent by A.M. Best Company and is a long tenured member of ASPPA and NIPA.
Click here to learn how to become a Pension Professional Partner.
If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance, click here.