Changing TPAs, need new doc--plan expense?

[BG5150]

Plan is moving TPAs.  Old TPA (obviously) will not continue to support their plan doc.

When the plan is restated to the new TPA's doc, can that expense be passed on to the trust?  Either forfeiture or participant accounts?

[Bill Presson]

If you can treat it as a required C3 restatement, there's no question. If it's just because the ER wants to do so, it's less clear. But if the ER makes the case that it's in the participants best interest, I would think so.

[BG5150]

It was the sponsor's discretionary decision to move TPAs.  But because of that, they need a new document, as the old one is no longer being supported.

Let's just assume this is NOT a required restatement for Post PPA.

[Bird]

I thought it was settlor expenses that could not be paid by the trust.  Settlor expenses being starting and terminating the plan, in my perhaps too-short hand.  I don't think anyone would seriously question this as a plan expense.

[CuseFan]

Sponsor's discretionary decision and then the acts necessary to execute that decision are separate issues - like deciding to terminate a plan (discretionary action, costs associated therewith not payable from trust) and then doing all the required actions to complete the termination which are payable from the trust.

Is adopting a new provider's preapproved plan absolutely NECESSARY? No, but otherwise they have an unsupported IDP w/o a D-letter. So can you very readily argue that it is fiduciary prudency to adopt new document and a necessary action to fulfill fiduciary duty? I think that is clearly the case and see no problem paying such fee from the trust.

[CuseFan]

Furthermore, if the new provider REQUIRES it, then that seals the deal IMHO.