DOL Audit efforts

[Hypothetically]

I heard in a seminar that the DOL is now concentrating efforts and rather than randomly targeting plans for audit, they are going after TPA firms they know have problems and auditing their clients.

My question is, what authority, if any, does the DOL have over TPA firms. Should they chose to target a particular TPA firm, how would they be able to find out who its clients are. Can they demand a client list?

[ETA Consulting LLC]

To my understanding, that has always been the case. "IF" the DOL has evidence that a TPA is incompetent, they may audit the entire book of plans. For instance, suppose a TPA consistently provides false information on a Form 5500 and it becomes evident after auditing 3 or 4 plans with specific omissions. The DOL can begin to question whether every Form 5500 completed by that TPA is erroneous (intentional or otherwise), and audit that operation. Situations going beyond simple reporting issue and delving into infringing on employees rights under the plans are even worse.

So, who's going to make an argument that they cannot do that

Good Luck!

[MoJo]

Would not a TPA be a "party in interest" giving justification to the DOL to investigate? In addition, where is it prohibited that the DOL can only "review" information about a plan from the plan sponsor or other fiduciary? The "subpoena power" allows them to get information from anyone who holds that information. Over twenty years ago I worked for a bundled service provider (a large bank) and the DOL routinely requested (sometimes informally, sometimes formally) about plans we serviced, and at least once, came in and request a list of all plans that met certain criteria for further examination.