As a plan sponsor, there can be any number of reasons you may consider looking for a new 401(k) provider. Whether you’re unhappy with the quality of support you’re getting, looking for deeper educational opportunities for employees, or trying to reduce plan expenses, the benefits for plan sponsors and their participants of moving plans can be worth the challenges of implementation.

It’s a good practice to periodically review plan providers to ensure your plan is up to par with the best practices in the industry and that your employees are getting good value for the cost. Here are some things you should do as you conduct this evaluation:

1. Review Existing Agreements

Obtaining and analyzing the plan’s most current agreements gives plan sponsors an opportunity to review the services being offered and ensure they’re understood. Many plan providers list services they will provide but never actually get called on to provide them. This review gives plan sponsors both the ability to ensure they are utilizing them and compare services across other providers.

2. Analyze Current Provider Fee Schedules

This enables plan sponsors to understand current pricing and be able to easily compare it to proposed pricing schedules. Providers are required to provide annual fee disclosure reporting to plan sponsors, so it's important that plan sponsors confirm they understand the fees being assessed to the plan.

If you are unsure about the fees, ask the provider to give an explanation. Being able to break the fee down into different service areas can help facilitate an easier review of other providers.

3. Maintain Existing Investment Line-Ups

Some providers may provide limitations on what investments may be utilized on their respective recordkeeping platforms. Be sure to review the investments currently in your plan and any new potential investments with new providers to ensure they can still be utilized. The investments in your plan should be the investment committee’s selection and not dictated by the availability within a recordkeeping platform.

4. Understand What Fiduciary Responsibility Current Providers Are Taking On

Understanding your fiduciary responsibilities and what ways can be leveraged to assist in those responsibilities has become an extremely important role for plan sponsors. Managing plans can be very burdensome, and there are many ways plan sponsors can get fiduciary support. Reviewing potential fiduciary support opportunities can not only alleviate your responsibilities, but it can also provide great enhancements to the plan and its participants.

Finally, it’s important that you determine what should be maintained as you explore other providers. Are there additional fiduciary responsibilities available to outsource to help with the oversight of the plan?

5. Seek Out Educational Opportunities

Not all educational opportunities may be beneficial for your employees. Understanding what education would be best for your specific employees should be the first step to understand. Once that is available, use that as a means to help identify providers that may best deliver in those education areas. Providing good education in the suitable way for your employees can be very advantageous for your participants.

Deciding to change retirement plan providers is a big step, and it’s not a decision that should be taken lightly. That said, you need to determine what’s best for you and your employees, so it’s a good idea to stay abreast of what’s available to you in the retirement plan marketplace. Discuss your options with your retirement plan consultant, as they can help advise you on the best course of action.