{"id":8535,"date":"2026-02-26T16:27:38","date_gmt":"2026-02-26T21:27:38","guid":{"rendered":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=8535"},"modified":"2026-02-26T16:27:38","modified_gmt":"2026-02-26T21:27:38","slug":"what-tpas-get-sued-for-hint-its-not-the-calculator","status":"publish","type":"post","link":"http:\/\/therosenbaumlawfirm.com\/blog\/?p=8535","title":{"rendered":"What TPAs Get Sued For (Hint: It\u2019s Not the Calculator)"},"content":{"rendered":"
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As a retirement plan attorney, I can tell you this with certainty: TPAs are rarely sued because they miscalculated a contribution by a few dollars. Math errors happen. The industry knows how to fix them. Lawsuits don\u2019t come from arithmetic\u2014they come from assumptions, silence, and blurred lines of responsibility.<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Most TPA litigation starts with communication failures. A plan sponsor believes the TPA is \u201chandling\u201d something\u2014eligibility, forfeitures, corrections, safe harbor status\u2014when in reality the TPA assumed the sponsor was making the decision. That gap is where lawsuits live. Plaintiffs\u2019 attorneys don\u2019t care what the service agreement says if the emails, reports, and conversations suggest reliance.<\/p>\n

Another common trigger is scope creep. TPAs pride themselves on being helpful, but \u201chelpful\u201d can quietly morph into discretionary behavior. Explaining options is fine. Recommending a specific correction approach without documenting that it\u2019s a sponsor decision? Dangerous. Especially when that recommendation later turns out to be wrong or incomplete.<\/p>\n

Then there\u2019s documentation\u2014or the lack of it. Many TPAs do excellent technical work but fail to clearly memorialize what was decided, by whom, and why. In litigation, if it\u2019s not documented, it didn\u2019t happen. And if the file is thin, the TPA often becomes the most convenient defendant.<\/p>\n

Finally, TPAs get pulled into lawsuits because they are perceived as the smartest party in the room. Sponsors rely on that expertise. Courts notice that reliance. And once reliance is established, disclaimers alone don\u2019t save you.<\/p>\n

The takeaway isn\u2019t that TPAs should do less. It\u2019s that they must do their work deliberately\u2014with clear boundaries, written confirmations, and an understanding that judgment carries risk.<\/p>\n

The calculator won\u2019t get you sued. Everything around it might.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

<\/span><\/p>","protected":false},"excerpt":{"rendered":"

As a retirement plan attorney, I can tell you this with certainty: TPAs are rarely sued because they miscalculated a contribution by a few dollars. Math errors happen. The industry knows how to fix them. Lawsuits don\u2019t come from arithmetic\u2014they … Continue reading →<\/span><\/a><\/p>\n

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