It’s a question I get asked all the time – this week, I’d like to know what your plan sponsor clients think – and do – when it comes to the balances of former participants.
Over the years, I’ve read – and heard – conflicting opinions. The “rational” side seems to argue that you should encourage participants to keep their money in the plan, particularly longer-term workers, since those (typically) larger balances can help lower plan fees, or at least provide more balances to spread fees over.
On the other hand, I’ve rarely encountered a plan sponsor who wasn’t (painfully) aware of the complications (and costs) that result from having to keep up with ex-employees (particularly as regards delivering all the required notices).
This week, I’d like to know what the plan sponsors you work with think – and do – regarding those “ex-participant” balances: Do they encourage – or discourage – them staying in the plan, or do they just let nature take its course? And just as importantly – what do you recommend?
You can reply to this week’s NAPA-Net Reader Poll at https://www.research.net/r/5YMNRX8.
And, of course, we’ll be ready to roll it out for you on Friday!
