I had a plan sponsor forward me a contract they received from their financial advisor on a previous plan. Rightfully, the plan sponsor was concerned that they received this contract out of the blue.
While this plan sponsor was wise to reach out to me, I find that most small to medium sized employees don’t reach out to counsel to review a plan contract. I find that a mistake because contracts may have hidden fees and surrender charges that non-ERISA counsel or non-counsel may be unaware of. There is nothing worse for a plan sponsor to be unhappy with a specific provider and find out that there are charges that they would be responsible for, sometimes in the tens of thousands of dollars.
So that is why it’s wise to make sure all contracts with plan providers are reviewed by counsel.