Third-Party Administrator (TPA) | Practical Law

Third-Party Administrator (TPA) | Practical Law

Third-Party Administrator (TPA)

Third-Party Administrator (TPA)

Practical Law Glossary Item w-020-6815 (Approx. 3 pages)

Glossary

Third-Party Administrator (TPA)

In the employee benefits context, a type of service provider for an employee welfare benefit plan or employee pension benefit plan. Services provided by a TPA may include:
A TPA that performs solely ministerial functions for a plan governed by the Employee Retirement Income Security Act of 1974 (ERISA) generally is not an ERISA fiduciary, unless the TPA exercises discretion or control over the plan (see Practice Note, ERISA Fiduciary Duties: Overview). In addition, a TPA that assists with plan administration generally does not do so as the plan's formal ERISA plan administrator (but see Practice Note, Contraceptives Coverage Under the ACA: TPA Responsibilities Under Accommodation).