Why Retirement Plan Sponsors Shouldn’t Pick the “Cheapest” Plan Providers

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My wife loves a good bargain; I have lots of credit card bills to prove that. Seriously, my wife is an excellent shopper because she is a savvy shopper. My wife likes a good bargain and it’s about value, getting something in quality that is on sale. Why buy something at retail price, when you can get in a few weeks at 30% less? The Lego City sets we get for my kids are much more enjoyable to us when it’s 50% off than when it’s retail. But a bargain is different than something that’s cheap, a Lego City Bank set that’s 50% off is a better value than the generic Lego knockoff that you see sold at the local 99 cents and up store. As a plan sponsor, you have a fiduciary responsibility to find a bargain when it comes to picking a plan provider, but you may increase your potential liability by picking providers just because they are cheap. This article is about why you shouldn’t pick a plan provider just on low price.

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Published In: Business Organization Updates, Finance & Banking Updates, Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ary Rosenbaum, The Rosenbaum Law Firm P.C. | Attorney Advertising

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