Statement of Plan Compliance for vendor to sign off on each quarter

[alexa]

I am looking for a sample of a Statement of Compliance to have our DC plans vendor certify to each quarter that they have been administering the plans in accordance with plan and trust documents.

Has anyone done anything similar?

Thanks

[mbozek]

My first question is Why would a vendor sign such a statement since they are not gong to be responsible for reading your plan docs every time they get an instructions from a plan rep?

Second do you have a a TPA or administration agreement with the vendor?? IF so the vendor probably limits its liability for mistakes in performing its duties and may expressly exclude being responsible for interpretating the plan or performing any duties other than those directed by a plan rep and will be held harmless by the plan for carring out its duties under the plan.

Third: Signing that kind of document could make the vendor a fiduciary under ERISA. I dont think the vendor's counsel will approve such a document.

The only way the vendor will sign that document is if it gets an opinon from the plan's attorney every time instructions are issued by a plan rep stating that the instructions comply with the plan and ERISA.

[Archimage]

I have never heard of anything like that either. My guess is that you may be looking for a SAS70 audit of internal controls for the plan auditor?