Fees Top Reason Plan Sponsors Switch Providers

Fees have become the top reason retirement plan sponsors switch providers, outpacing poor service, according to a new Spectrem Group report. Nearly one-third (30%) of plan sponsors cited cost/fees as the primary factor precipitating a change in plan providers, according to the report, “DC Market Needs.” This surpassed poor service (26%) and investment issues (12%), and represents the first time that fees have been cited by Spectrem as the number one reason study respondents gave for changing providers. In 2005, cost/fees finished third (18%) to both poor service (45%) and investment issues (26%). Fees also came in third in 1999 and 2002.