Plan Expenses

[Randy Watson]

Any thoughts on whether the cost of an RFP for a new TPA could be paid from the plan? Seems like a settlor function, but the RFP does relate to the adminsitration of the plan, the selection and monitoring of a service provider is certainly a fiduciary function and the participants could benefit from reduced administrative costs with the new TPA.

[jpod]

I could defend it, but it's not as clear cut as other costs, such as the actual recordkeeping fees themselves. I think it's pretty aggressive, especially since much of the RFP and the bidders' pitches will be directed at minimizing the employer's day to day burden in connection with plan administration.