Plan Administrator

[GBurns]

Almost all the Plan Documents that I see, whether isured or self funded plans, state that the Employer is the Plan Sponsor and the Plan Administrator. Why is the employer the Plan Administrator and not the claims paying etc TPA?

Any cites and links to explanations would be very helpful in helping me to explain not only that this is the industry standard but also Why?.

[Guest LFrankel]

I believe the underlying basis for that is because the "group" or employer is also the fiduciary. I'm unable to cite direct references, but there has been case law that indicates a participant does not have legal recourse against a TPA. This would also be the case in for a fully insured plan because the group decides on the plan design.