I was an employee once and that’s why I don’t have employees. If I did have employees and they left my employment, I’d like all strings to be cut. Some larger plans disagree.

According to a new Cerulli report, 84% of 401(k) plans sponsors with more than $500 million in assets prefer to keep participant assets in the plan during retirement. The reason is that these plan sponsors believe that increased scale helps them negotiate better prices with asset managers and other providers.

While increased assets are great, dealing with former employees isn’t worth the headache. Providing notices and education to current employees is difficult and just so much work when dealing with former employees. I would recommend that the work in dealing with them isn’t worth the increased assets.