401(k) Record Keeper Consolidation Spurring Innovation
401(k) Specialist MagazineOctober 11, 2018
Record-keeper consolidation has been active for years, with shrinking margins and economies of scale serving as driving forces behind the trend.
All else equal, plan sponsors don’t like to change providers. The vast-majority assist in the plan sponsor role as a side responsibility relative to their primary jobs., and service provider transitions can create significant work and be painful to implement.
However, increasing visibility into lawsuit activity and regulatory scrutiny are creating a greater awareness of fiduciary responsibilities and specific scenarios that warrant changes.
