TPA liability for IRS correction

[chris]

Anyone know of any cases in which TPA was held liable for errors in administration of a qualified plan such that the TPA was held to foot the bill for IRS correction?

[RCK]

I would think that if something like that had happened, it would have been the result of a confidential negotiation between the TPA and the sponsor, and would not be public information.

We had a situation where the trustee failed to follow our directions to pay the PBGC premium from the trust. After some discussion, they agreed to pay any penalites that emerged.