Sometimes there will be a proclamation in retirement plans that something is the best thing since sliced bread. I guess when someone first used a knife to cute bread that must have been a big deal too.
But the fact is that despite something being so great, it’s not great for everyone. When safe harbor 401(k) plans were implemented in 1999, that was the greatest thing since sliced bread, but it wasn’t for the plans that regularly passed their compliances costs or those firms that couldn’t pay the required 100% vested contributions to employees.
An ERISA §3(38) fiduciary is a great thing to have, having a financial advisor assume the responsibility in managing a plan’s fiduciary process. But if the plan has an employer with a staff that can effectively manage the process, it’s not as good as sliced bread. The same with an ERISA §3(16) service (I know, I have one). The same with cash balance plans, automatic enrollment, and everything else that is the best thing since sliced bread. As a plan sponsor, it’s up to you to figure out what’s the best thing since sliced bread and what isn’t.
There is nothing offered in the retirement plan business that’s the right for everyone. Like a suit, it has to be the right fit and there is no suit that is a one size fits all. The same with any retirement plan feature or service.