Hiring a third party provider to perform plan administration services is a fiduciary function and, as such, plan administrators are required to periodically monitor their service providers to ensure they are performing the agreed-upon services.
The AICPA Employee Benefit Plan Audit Quality Center has prepared the Plan Advisory, Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions, to assist plan administrators in understanding their responsibilities for monitoring their TPAs. It is a comprehensive document that contains information about your fiduciary responsibility for monitoring TPAs and useful tips for selecting and monitoring service providers, and addresses the quality of plan accounting information, monitoring TPA controls over plan accounting information, and special considerations for different types of plans.
Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions (Low Resolution)
This is a low resolution version of the document and can be printed directly to a desktop printer.
Sample Client Transmittal Letter for Effective Monitoring Plan Advisory
This document may be used by plan auditors for transmitting the Plan Advisory to their employee benefit audit clients.
Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions (High Resolution)
This is a high resolution version of the document which includes a bleed and crop marks and can be used for offset printing.
Instructions for Printing the Plan Advisory
Use these specifications when printing the Plan Advisory in booklet format.