How to choose the right TPA for your Labor Fund

The Labor Fund landscape is complex, to say the least.

There are a lot of different aspects to consider: health plan management, trust fund administration, contribution eligibility, and accounting — not to mention delivering retirement services.

TPAs can play a key role in managing and streamlining these complexities, offering essential support that can make day-to-day life easier and deliver a one-stop solution across the board.

But not all TPAs are built equal. It’s vital that you choose the right TPA that suits your Fund’s needs so you can get the best support moving forward.

This article will give you a clear step-by-step guide to choosing the right TPA, including what you need to look for and everything it should take off your hands.


First, how exactly does a TPA help a Labor Fund?

A TPA needs to cover a lot of ground to provide the right support for a Labor Fund — and you should never settle for less than you need. This support includes:

Trust fund administration

You might be managing your trust fund administration manually or using a variety of vendors. Whatever your current situation and setup, a TPA can help you support member programs and multiple employers with seamless administration.

An expert TPA can help you with:

  • Reliable trust accounting and trust expense management
  • Board meeting management and coordination
  • All administration that comes with trustee support
  • Fund management of apprentice training programs


Health and welfare funds

When you’re considering a health and welfare plan, your members’ needs will be front of mind. A TPA should work with you to customize a plan that fits your needs while also taking into account your budget.

An expert TPA can help you with:

  • Network management, including direct-to-provider, reference-based pricing, and more
  • Subrogation management
  • Medical management
  • Accurate reporting and data analytics


Retirement services

Your members need the comfort of a retirement plan they can feel confident in. A TPA should work closely with you to design, plan, and implement the best plan for your business and manage ongoing administration.

An expert TPA can help you with:

  • 401(k) management and administration that’s ideally customizable to fit your needs
  • Compliant retirement and pension administration plans to keep you on the right track
  • Reliable annuity services


Contribution accounting and eligibility

A TPA should make eligibility and enrollment faster and simpler than ever before. Automation should play a big role, as should the ability to glean valuable data and insights.

An expert TPA can help you with:

  • Employer contribution
  • Determining enrollment and eligibility
  • Precise reporting
  • Ongoing vendor management
  • Wellness management
  • Calculating and maintaining PTO/payments


What you need to look for in a TPA

Now you know what a TPA should cover, it’s time to take a long, hard look at exactly what it’s bringing to the table.


Your Fund is unique — and so are your requirements. You need a flexible TPA that can offer customizable options for your plans and administration. An expert TPA will take the time to talk through everything you need.

Your chosen TPA should be agile enough to respond to changes in the regulatory environment so it can efficiently manage the Fund’s complex benefits and member services. Make sure it provides tailored services to cater to your unique needs so your members will be happy and your fund will be as efficient as possible.


Experience in the industry

An experienced TPA brings extensive knowledge gained over years of handling diverse benefits structures and multifaceted fund operations. This quality is essential because it means a TPA has the ability to foresee and mitigate potential challenges.

Your chosen TPA should also be in the position to relay best practice guidance and make informed decisions to safeguard the best interests of your fund.


Technology capabilities

Having the right technology at your fingertips is more important than ever. TPAs should leverage technology to streamline administrative tasks, safeguard sensitive data, integrate multiple vendors, and provide accessible, transparent reports to fund managers.

Ask your prospective TPA what its technology can do.


Breadth of services

It’s vital that your chosen TPA offers the full package when it comes to your Fund. Does it cover everything from trust fund administration and health fund management to retirement services and contribution accounting and eligibility?

Ultimately, you want a one-stop shop to make your life as easy as possible.


Compliance and legal know-how

The world of compliance and regulations continues to evolve. A TPA should be well versed in the latest legal guidelines and know exactly how to navigate compliance. Ask about the processes and services they have in place to make sure you’re always compliant.


Communication and customer service

You’ll frequently need a quick answer or fast solution to a problem. You also need a TPA that will give you a dedicated account manager who will respond quickly and is equipped to handle any situation.


Scalability as your fund grows

As your Fund grows, the complexity of tasks might increase. It’s important that the TPA can grow because you don’t want to hit a ceiling and realize you need to switch providers. Instead, choose the right TPA at the outset.


Final thoughts

Your Fund comes first: It’s that simple. You need to choose a TPA that’s going to slot easily into your fund — one that’s in line with your values, your needs, and the direction you’re headed.

At MagnaCare, we offer labor TPA services designed to help you support members in a way that fits your business. Contact us today to find out more.


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