Why Use a TPA?
Answers from SPBA President Fred Hunt Since TPAs play such an integral role in the successful design, function, and government compliance of employee benefit plans, we are sometimes asked whether hiring a TPA is required by law. No, TPAs are not a legal requirement . However, just like attorneys, doctors, tax preparers, investment advisors, etc. the processes of modern life are so complex and have so many serious pitfalls for even “innocent” or unknowing oversights, that as judges often advise: “Only a fool has himself for a client.” Why is there so much government regulation? Though I often get fed up with government meddling, I think the fair-minded responses would be, “governmental feels it is a huge investor in each plan.” and “It is for your own protection.” Uncle Sam and States feel that they are major contributing investors in each employee benefit plan. Their monetary investment is in the form of tax deductions for employers, plus not counting the value of the benefit given as
