Did You Know the Plan Administrator is often confused for other roles?
The Plan Administrator is sometimes mistaken for the Third-Party Administrator or even the Plan Sponsor. Under ERISA 3(16), the Plan Administrator is designated by the plan document or it is the Plan Sponsor. The Plan Administrator has a number of responsibilities provided in the plan document, which includes selection and monitoring of service providers, interpretation of the plan document, providing all notices documents, and descriptions to participants, filing the Form 5500, and many others. This is too often seen as a ministerial function of the Plan Sponsor and is handed off to someone who does not have the authority. Just because someone is required by the Plan Sponsor to be Plan Administrator does not alleviate the Plan Sponsor from the liabilities. The one who exercises authority is responsible. Do you know who fulfills these duties? Give us a call, and we’ll uncover the mystery!