TPA Signing Authority for Plan

[DTH]

Has anyone seen where a plan administrator has given plan signing authority to the TPA? I'm not sure if a TPA would want to do this since it would also make it a fiduciary. If this can be done, would it be considered a prohibited transaction? ERISA does permit a fiduciary to be able to be compensated for fiduciary services.

Thanks!

[Blinky the 3-eyed Fish]

I imagine they are given the authority via a Form 2848. Why do you think this makes the TPA a fiduciary? Is your answer the same if they sign the IRS submission forms and if not, why?

[bzorc]

I have a client who signed a letter to the asset custodian authorizing us as TPA to have signatory authority over submissions relating to participant loans and withdrawals, as the plan administrator (i.e., the company) does not want to be bothered with the "menial task" of signing a loan or withdrawal request form. The asset custodian has no issue with this. Should I be concerned with my liability?

[david rigby]

Should I be concerned with my liability?

Of course, you have informed your E&O carrier of this arrangement?

[Guest Stuartt]

I have a client who signed a letter to the asset custodian authorizing us as TPA to have signatory authority over submissions relating to participant loans and withdrawals, as the plan administrator (i.e., the company) does not want to be bothered with the "menial task" of signing a loan or withdrawal request form. The asset custodian has no issue with this. Should I be concerned with my liability?

Take a look at section 3(21)(A) of ERISA. Sounds like you may now be an ERISA fiduciary.