Email received from plan trustee disputes a bill he received from the plan's third party administrator for approximately $5810. TTEE alleges it is a poor plan for lack of employee participation and that it has not been reviewed since October 2017. Upon review the firm learned the plan trustee failed to pay the TPA (October 2017) as well as the fees for 2.5 year's worth of administration and maintenance. The amount owed is inclusive of late fees. RR recommended the Group Annuity (Principal Life Insurance) based on the information provided by the plan sponsor. RR also recommended the TPA based on the TTEEs intentions and needs. The complaint does not allege unsuitability or poor market performance. RR responded to TTEE on 5/6/19 with information requested which was a breakdown of costs.

$5,810.00

I would also like to include a note stating the 3rd party administrator was a separate service provided by an independent local TPA firm and was a referral for TPA services to client. Client had met directly with TPA on multiple occasions, discussed their services and costs directly with the president of the TPA firm, had 2 years (2016 and 2017) timeframe for decision making process, before moving forward and signing a separate contract for services with the TPA. Client received TPA services, but had not paid anything to TPA for services rendered since plan inception. 2.5 years later, the client continues to refuse to pay for services rendered and complained that participation rates were low and not worth the TPA costs. TPA annual service fees were clearly stated and client had signed and dated TPA fee schedule acknowledging fees and services provided by TPA. TPA annual fees do not vary based on participation rates. Client was informed during plan design process that without a matching component, participation rates would likely suffer. Client was unable to provide a match at this time, but wanted to get the plan started and amend it at a later date to include a match as soon as he was ready. Client received educational seminar for employees, conducted by RR on 5/29/2018 at the company's annual business meeting (7 months after plan inception) to try and improve participation rates. It was noted again at the time, that without a matching component, the plan would likely continue to see low participation rates. Client publicly stated to his employees on 5/29/2018, that he was working on providing a matching contribution in the near future and urged his employees to participate in the retirement plan. A plan review was not conducted in Oct 2018 due to having discussed the plan on 5/29/2018 (2 to 3 month prior to 10/2018) and not much had changed regarding the plan since 5/29/2018. RR was waiting for notice from client that he was ready to provide a match. Client has yet to provide a match and the plan continues to suffer from low participation.