Trends in tpa marketing and guaranteeing our work

[chuTzPA]

Is there a trend towards offering some sort of Compliance Guarantee or other way of guaranteeing our work as tpa's? Does such a marketing approach have substance to it, considering the commitment reflected in our credentials?

[Effen]

So the obvious question is, you currently don't guarantee your work?

[chuTzPA]

well it wasn't an obvious question to me as i was thinking the quality of work was implicit by virtue of holding industry standard credentials as well as the ERPA in which the IRS holds us to certain standards, as well as that a good consultant takes responsibility when responsibility is due. I think errors slip through for everyone and I've never charged a fee related to an error our firm was accountable for. We have just never put that into specific words, perhaps that needs to change?

[Kevin C]

If you read the contracts from the larger firms in the field, you will find the opposite. Without exception, the ones I've seen very clearly state that the TPA/Recordkeeper has absolutely no responsibility for their work and all responsibility and liability rests with the plan sponsor. As long as plan sponsors are willing to hire them under those terms, I don't think you will see anything change. Some smaller firms stand behind their work, others don't. My employer stands behind our work. As for guarantees and contract language, I'm more than willing to leave those to the lawyers and E&O carriers.