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Posted

They want to start administering the plan without an agreement during a "discovery period". We question "what's to discover?" This is just routine administration. We don't see why we can't have an agreement before they take over.

Has anybody had an issue with them over this?

Posted
They want to start administering the plan without an agreement during a "discovery period". We question "what's to discover?" This is just routine administration. We don't see why we can't have an agreement before they take over.

Has anybody had an issue with them over this?

I have never heard of them, but the situation you describe would make me nervous. A Service Agreement clearly outlines the responsibilities of all the parties and protects the Plan (and the TPA) from all sorts of things. I think it is dangerous to hand over your plan records to them without an Agreement in place. Once they have your data (which is of course includes salary and identifying data for all your participants) it is too late. Certainly transitioning to a new record-keeper a chore; un-transitioning is even more so.

I'd run like h*** in another direction.

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