Third-Party Administrator (TPA) IT Readiness Checklist
How Ready Is Your IT for Plan Sponsor Review?
Every TPA depends on technology that must be accurate, compliant, and secure.
This short self-assessment helps you identify strengths, gaps, and next steps to build a stronger, more audit-ready IT environment.
1️⃣ Security & Access Controls
- Are all user accounts, including recordkeeper access, secured with MFA?
- Is data encrypted in transit and at rest?
- Are inactive or third-party accounts removed quickly?
- Is user access documentation current and accurate?
2️⃣ Data Protection & Backups
- Are backups automated daily and tested at least quarterly?
- Do you keep an offsite or cloud recovery copy?
- Can files be restored quickly if needed?
- Are backup reports reviewed regularly?
3️⃣ System Performance & Reliability
- Do you monitor uptime and performance across TPA and recordkeeper systems?
- Are patches and updates applied automatically?
- Is system speed and reliability consistent?
- Are performance logs kept for review?
4️⃣ Vendor & Compliance Preparedness
- Can you document IT controls for Plan Sponsors and recordkeepers?
- Do vendors meet current cybersecurity standards?
- Are access logs and audit trails available?
- Are your IT policies well-documented and up to date?
5️⃣ Incident Response & Continuity
- Do you have a written breach or outage plan?
- Have you tested recovery procedures this year?
- Is your recovery time (RTO) realistic and defined?
- Is continuity documentation reviewed annually?
Scoring
Count your “Yes” answers:
- 13–16: Excellent — maintain documentation and regular reviews.
- 7–12: Moderate — address weak areas to reduce risk.
- 0–6: High risk — immediate professional assessment strongly recommended. Your current environment may not meet Plan Sponsor expectations.
- Important: Even firms scoring 13-16 benefit from periodic third-party validation. Schedule your complimentary assessment to verify your controls before your next audit cycle