I had to be the Larry David here, but one of my gripes as a plan fiduciary and ERISA attorney is when third-party administrators (TPAs) or custodians screw up on paying fees.
I will have one plan where every quarter, there is some issue. It usually involves multiple checks. Yes, they send me multiple checks for one fee. Sometimes, they don’t send any checks for the quarter.
As a plan provider, you need to be competent, and paying the right fee is the first step.
Years ago, I was a 3(16) on the plan. The TPA paid me the advisory fee one quarter, which was a few times more than mine. I deposited the check in escrow and wrote a check back, as soon as they discovered the error. That same TPA later paid the advisor a fee that equaled their annual fee, instead of their quarterly fee. The best part is they wanted me to pay for the error, instead of returning the money that they weren’t entitled to. They even had the plan sponsor ask me to pay for it. They never asked the TPA. Needless to say, a threat to call the Department of Labor fixed everything.
