If I had a dollar for every time a plan sponsor told me, \u201cWe\u2019ve always done it that way,\u201d I\u2019d have a retirement plan without recordkeeping fees. Tradition might be great for Thanksgiving recipes, but it\u2019s a disaster for plan administration.<\/p>\n
Most operational failures start with routines no one has questioned in years. Eligibility rules that no one updates. Payroll codes no one checks. Service agreements everyone assumes say something they don\u2019t. \u201cAlways\u201d is not a compliance strategy, it\u2019s a liability.<\/p>\n
The 401(k) world changes constantly: regulations shift, workplace demographics evolve, and technologies improve. If your internal processes haven\u2019t changed since the Bush administration (pick your Bush), it\u2019s time to rethink your approach.<\/p>\n
Good fiduciaries challenge habits. They don\u2019t assume last year\u2019s process fits this year\u2019s workforce. They ask questions, update procedures, and document every improvement. \u201cWe\u2019ve always done it that way\u201d is a sentence that belongs in a museum. A plan sponsor\u2019s job is to retire it.<\/p>\n
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