Q. Can you please elaborate on California Insurance Code Section 770.3 and how it applies to 403b investments through payroll deduction at school districts? Also, does California require a third party administrator (TPA) to be licensed and if so, is there a registry of TPAs showing licenses status?
A. California 770.3 provides that product providers that are registered through the California State Teachers’ Retirement System must be given a payroll slot as long as the provider will agree to share information for compliance purposes as required by the IRS. To assure the information sharing, districts are permitted to ask that the providers sign service provider agreements.
I am not certain about TPA licensing requirements, and unaware of a TPA registry. Would our TPA members please assist with this answer?
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