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October 2006 | Volume V, Issue 9 |
Checks & Balances for Plan RecordsIn light of recent events, it may be a good time for every administration company to review their operations specifically dealing with the accessibility of employer plan records. More specifically, how the employer gets access to their plan information. Do employers get printed reports only after a request by the plan sponsor? Does the employer get an electronic file monthly with account balances and participant information? Does the employer ever get access to the records maintained in the administrator’s system? In the 21st Century, information is power. The most valuable asset that administrators maintain is not the bank account number for participant reimbursements; it is the plan’s data. The names, Social Security Numbers, bank account information, health records, and other information are much more important to the plan than a single bank account. The Third Party Administrator’s job is to protect the data and maintain it in a secure environment, and provide access to it when requested. However, your employers need to know that they have access to their data whenever and in whatever format they desire. In a recent conversation we had with a large employer who was in the process of switching administrators, we were amazed at the limited amount of data the employer truly possessed. With the previous administrator, the employer had a list of active participants and contributions to date, both generated through the employer's payroll, but at no time were they presented with any transaction details. Not a single claims history report detailing the reimbursements issued to their participants was available, nor were any payment registers to allow for an independent audit of the bank account statements available to the employer. The reason given: the employer merely hired the administrator to keep records and process claims. Provide your employers with the reports and data they need and at a time that works for them. The myRSC.com web portal’s employer access provides multiple reports and many in a downloadable Excel format. Information at the employer’s fingertips 24 / 7 / 365. |
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LEGAL DISCLAIMER: Material contained in
this newsletter is not legal advice, and should not be construed as
legal advice. If you need legal advice upon which you can rely, you
must seek a legal opinion from your attorney. © DataPath, Inc. 2006 |