Prudent Benefits Admin. Services Inc.

Third-party administration is a service which assists plan sponsors in managing the required day-to-day activities of benefit programs. The required services will vary from one benefit program to another, as will the delivery of services from one administrator to another. One of the common needs of all plan sponsors is to satisfy regulatory compliance and to pass governance assessments when they are applied to their benefit programs. What distinguishes plan sponsors, from one another, is the degree to which the specific requirements of their constituents and their own objectives are reflected in the operations of their plans. That demands flexibility and creativity in the administration.

The hallmark of Prudent Benefits Administration Services Inc. is adaptability. Our support systems have been developed and revamped around that theme. We constantly strive to meet the requirements of a diverse client base, through staff who have been, and continue to be, trained to provide meaningful assistance to plan sponsors and beneficiaries.

What follows is a check list of services which each plan sponsor should consider before selecting a TPA. In this way, realistic and affordable costs can be established and expectations met.

Check List of Administration Services

SERVICES

PLAN SPONSOR

GENERAL

Trust

Employer

Union

Assoc.

Identify and establish the operating guidelines for both the benefit plan and the plan sponsor.

Establish and maintain the data base.
Improve and update the data base information.
Develop standard contribution reporting procedures.   
Protect the data base, through back-up, off-site storage and proper provision for disaster recovery.
Protect the plan sponsor through adequate insurance coverage for service provided.

Establish guidelines for ongoing interaction with:

The settlors of the trust …    
The contributing employers …   
The actuary …
The auditor …
The consultant …
The custodian …
The investment manager(s) …   
The legal counsel …   
The regulatory authorities.
Work with the other service agencies employed by the plan sponsor.
Process plan and procedural changes.

SERVICES

PLAN SPONSOR

FINANCIAL

Trust

Employer

Union

Assoc.

Establish banking services applicable to TPA services.
Receive, bank and verify contributions or deposits for self-funded programs.
Receive, bank, verify and distribute collector funds.    
Disburse funds to investment managers.    
Invest funds.    
Pursue delinquent contributions and related reports.    
Pay expenses.
Calculate deposits required for self-funded programs. 
Calculate and pay insurance premiums.
Calculate and make reciprocal and transfer payments.    
Establish and perform accounting procedures.
Prepare and distribute interim financial reports.
Prepare working papers for fund auditor.    
File reports required for regulators and government agencies.

SERVICES

PLAN SPONSOR

BENEFICIAL

Trust

Employer

Union

Assoc.

Receive and adjudicate claims for benefits.
Secure missing claims information.
Pay, or direct the payment of, eligible claims.
Deny ineligible claims.
Update claimants’ records.
Respond to beneficiaries’ questions.
Counsel beneficiaries.
Distribute descriptive literature.
Prepare and distribute benefit statements and certificates.
Protect beneficiaries’ data in accordance with privacy legislation.

SERVICES

PLAN SPONSOR

MANAGERIAL

Trust

Employer

Union

Assoc.

Establish and maintain document libraries.
Arrange space for meetings.
Prepare and distribute notices of meetings.
Extend requests/directives, for meeting attendance, to third parties.
Prepare and distribute agendae … and assemble and distribute other meeting material.
Attend meetings.
Take, transcribe and distribute minutes from meetings.
Serve on sub-committees established by plan sponsor.
Arrange for attendance at educational conferences.
Arrange and place E&O liability insurance.
Propose improvements to services.
Advise against imprudent action.
Report as requested.