TPA Liability for Preparation of Form 5500 (Posted March 31, 2001) Technical Tip 9: The following question and answer were from the DOL Q&A Session at the 2000 ASPPA Annual Conference: Are there any penalties if a TPA (third party administrator) is preparing a 5500 Form for review and signature by the employer and the TPA answers one of the questions on the 5500 without knowing whether the answer is correct or not? DOL Response: The obligation to file the annual report on Form 5500 is placed on the plan administrator under Title I of ERISA. The penalty for a late or incomplete filing of a Form 5500 is the liability of a plan administrator. The plan administrator has a duty to make sure that the Form 5500 being filed is complete and accurate. In addition, if a TPA has undertaken fiduciary duties, then there could be issues of fiduciary breach in the situation posited. The question asked also raises issues outside the purview of the Department, such as whether there could be liability of the TPA to the administrator. Caveat: The answer was drafted by Fred Reish and Brad Huss, the program moderators, based on their understandings of discussions with four senior officials of the Pension and Welfare Benefits Administration (PWBA) of the U.S. DOL. As a result, it does not represent a formal or binding position statement by the PWBA. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.