Nobody likes paying to fix someone else’s mistake. I certainly don’t. If a retirement plan provider gives bad instructions, misses an eligibility date, or mishandles information, a plan sponsor has every reason to ask why it happened and who will pay.
But asking those questions doesn’t correct the plan.
I’ve seen situations where everyone becomes so focused on assigning blame that the actual problem sits there. The sponsor blames the TPA. The TPA blames payroll. Payroll says it followed instructions. Meanwhile, the participant is still missing money, and nobody has agreed on what happens next.
Being right about fault doesn’t make the delay useful.
The first task is to establish the facts. What went wrong? Which participants and years are affected? What records are needed? Then get qualified guidance on the correction and establish who will complete each step.
You can pursue reimbursement while that work proceeds. Document the provider’s instructions, preserve the correspondence, and review the service agreement. If the provider caused the problem, ask for a written explanation and a proposal for addressing its share of the cost.
Just don’t make the participant’s correction depend on winning an argument between businesses.
That doesn’t mean accepting every demand from a provider or writing a blank check. A proposed correction should be explained and supported. The sponsor needs to understand what it is approving.
But refusing to engage because “this wasn’t our fault” usually makes the situation harder to resolve.
A plan sponsor hired providers because it needed assistance. When that assistance fails, the sponsor still needs to coordinate a response and make sure the work gets done.
Hold the provider accountable. Seek reimbursement when appropriate. Replace them if the relationship warrants it. But keep the correction moving. You can argue over the bill without leaving the plan’s problem sitting untouched.