4 Reasons to Change Retirement Plan Providers

by Vanessa Spenard, CFP®
Wealth Advisor, Midland Wealth Management

Hi, this is Vanessa Spenard with Midland Wealth Management. Do you offer a company retirement plan? If so, when’s the last time you really reviewed it? Here are 4 reasons you might want to change retirement plan providers:

1. Your plan investments may be lacking.

You may have too many offerings that can be confusing to employees or maybe you aren’t getting the returns you were expecting. The investment selection plays such a big part of retirement success. You want a plan manager who can offer solid, high-performing investments that meet your company’s needs and that can help educate your employees to make the best decisions for them.

2. You just have too many cooks in the kitchen.

Many providers use an unbundled approach, meaning you have to work with separate companies to make the plan run, from brokerage to recordkeeper/TPAs. Many times, this is where things tend to fall through the cracks or there is miscommunication. More often than not, you have to chase down multiple phone numbers to address any questions you have or sift through the layers of people to find the right person to help. So if this is you, you may want to consider a new plan manager.

3. The cost of your plan is too high.

You never want something so beneficial to the company to be a burden in cost. Look for a plan manager who understands your goals and review plan cost. Make sure the fees are transparent and fair. Many times, you’ll find fees hidden in places you were unaware.

4. And lastly, you are the plan trustee and aren’t comfortable with that level of liability.

More times than not, many plan sponsors don’t know they’re the trustee or don’t understand the responsibility that comes with it. If something goes sideways with the plan, you find yourself in noncompliance, or worse, one of your employees sues the plan? It’s all on you and you can quickly find yourself being personally accountable for any damages. It can be a pretty scary process, so you might want someone on your side that can help navigate the rules and share in the responsibility. So look for a plan manager who can also be a trustee. If any of these items resonate with you, review your plan and look for a second opinion. It might just help save you time, money and grow your personal wealth.