So often when dealing with retirement plan providers, a plan sponsor may discover that one of their plan providers had a change of plans and decided to do what’s better for themselves than what was in the client’s interest.
We’re not just talking about providers, who embezzle plan assets like that fiduciary expert I remember by the name of Matt Hutcheson. We’re talking something as simple as pushing plans to other providers to curry favor and better pricing for their block of business or steering assets to a certain mutual fund to get a better trail/payment.
The same can be said of plan sponsors where the decision makers hire providers because it’s somebody’s relatives or they steer business to a custodian because they do banking there.
Everything that a plan sponsor and a plan provider have to do is make sure that all plan decisions are on the up and up and that decisions aren’t done in the spirit of making someone a couple of bucks in the long run, off the backs of plan participants.