Our TPA has been asked to takeover a client from another firm that clearly is having major service issues. The most significant concern is that the (prospective) client cannot locate a copy of their 401(k) plan documents and the current TPA has not provided a copy after repeated requests. The plan has been in existence since the late ‘90s. We have advised the client to hire an attorney if necessary to get the document from the current TPA, but there is a concern that the TPA may not have a copy to provide. The client wants to make things right. Can anyone advise as to the proper way to handle this issue (VCP, etc.)?

It is clearly (to me anyway) that it is not the responsiblity of the TPA to keep documents. It is the responsibility of the plan sponsor. It is a legal document of the sponsor, not the TPA or recordkeeper.

Keep looking.

Did somebody try the Trustee, accountant, broker, etc.? How about any clue from the 5500 filings? If you suspect it may not exist, the problems are much larger than a missing document. How about missapropriation of salary for one? Require the client to get a lawyer yesterday.

Before hiring a lawyer, I would suggest calling the TPA yourself. Call the owner of the TPA firm if it is small. I have run into this tons of times, and sometimes just calling them, being friendly and just asking them to help you out, will work out.

I have found many, many times that the client says they requested it, it was requested from the TPA but they are just busy with other clients....it is on their "to do list" but keeps getting back burnered, etc...

Just be friendly, call the guy up yourself.

Keeping in mind comments so far - I agree it's not the TPA's responsability to keep the document, however, they should have a copy at the very least.

Things to consider - type of document - it very well could have been drafted by someone other than the TPA, especially if it's not a volume sub doc.

I like the very last suggestion - have the client retain counsel - sounds like they're going to need it, if not just to get a document in place.

Following up on ERead's first sentence - how does the tpa perform its functions with respect to the plan if it does not have a copy of the document? ...of course, we may not want to see the answer...

I'm merely saying that the TPA is not required to keep/maintain/update/draft/amend the plan document.

I'm sure that a "summary" or an SPD could be used by the TPA for them to code systems and administer the plan without a document - wake up... huh - oh yeah.... right... although, I'd be very leary of that TPA were I a Plan Sponsor.