Call Us Today! 516-594-1557
Bad Behavior You Shouldn’t Replicate As A Plan Provider.
I like to treat people the way I wanted to be treated. It usually works out, but there are instances where the other side doesn’t follow the path I’ve taken. As a retirement plan provider, you need to take a certain path and that’s to avoid some of the perils I will outline. You want to be known for good things and not bad behavior, this article will spell court what kind of plan provider you shouldn’t be.
Just be accountable.
People don’t like to be accountable for the most part. It’s just human nature to blame someone else. Heck, I used to do it at work and I still do it at home.

When I was working at that law firm and I wasn’t able to draw enough business to my practice, I can fault the law firm partners who didn’t refer me work or the marketing office couldn’t help so much because they were doing work for other and the process took 6 months to get an article published. Ultimately, it was my fault that I didn’t get it done. So I dusted myself up, went on my own, and the rest is history (I mean it’s in my eBook). I changed what didn’t work and what I wasn’t allowed to do (social media) and I was able to support myself on my own.

Too often plan providers get in the business of not admitting fault when they make mistakes and it’s frustrating for plan sponsors because sometimes all they want is a simple apology.

An apology is not an admission of guilt, it’s just an expression and sometimes just saying you’re sorry is what minimizes small disagreements into becoming World Wars.

I know firsthand, I grew up in a family where you think an apology was draped in the blood of the one who offered it.

Being accountable and admitting when you’re wrong is just good business skills. It’s a great way to retain clients because it’s the unhappy clients who leave.
You have a missing participant if...
According to the Department of Labor, you have a missing participant problem if:

1) You have more than a small number of missing or nonresponsive participants.
2) You have more than a small number of terminated vested participants who have reached normal retirement age but have not started receiving their pension benefits.
3) Missing, inaccurate, or incomplete contact information, census data, or both (e.g., incorrect or out-of-date mail, email, and other contact information, partial social security numbers, missing birthdates, missing spousal information, or placeholder entries).
4) Absence of sound policies and procedures for handling mail returned marked “return to sender,” “wrong address,” “addressee unknown,” or otherwise, and undeliverable email.
5) Absence of sound policies and procedures for handling uncashed checks (as reflected for example, by the absence of an accounting journal or similar record of uncashed checks, a substantial number of stale uncashed distribution checks, or failure to reclaim stale uncashed check funds in distribution accounts).

As with anything in retirement plans, you need a plan and a way how to handle missing participants. But before you can, you need to know you have a missing participant problem.
Potential Conflicts shouldn't be just dismissed.
As a retirement plan provider, you need to understand where there is a conflict of interest if someone you know hires you. Whether it’s a family member, golf club, church, or bank where you serve as an advisory board member, you need to identify any potential conflicts of interest.

While a plan provider needs to understand the prohibited transaction rules under ERISA and the Internal Revenue Code, a plan provider should also identify the non-retirement plan rules on conflicts of interest. For example, if you are on a private school committee and you are hired as the school’s retirement plan advisor, you may not have an issue with the prohibited transaction rules, but you may have a problem with the school’s rules on conflicts.

Nepotism is as bad as cronyism, so getting hired as a retirement plan advisor because you’re related to a decision-maker is also a potential problem. It might be Kosher with ERISA and the Internal Revenue Code, but it may not pass muster with the courts and/or the Department of Labor under review.

Just because something might be OK with retirement plan rules, it may not be good for the organization or person that did the hiring.
You should pick out the groceries.
If there is one famous quote that’s landed me in trouble, it’s one from my favorite football coach Bill Parcells. Parcells was coaching the New England Patriots and he wasn’t getting along with the new owner Robert Kraft because Parcells no longer had a say in player personnel issues. The quote was: “If I’m going to be asked to cook the meal, I’d like to be able to pick the groceries.”
I believe in that quote in the sense that I believe that if I have to “cook” the meal, I should have a say in how the groceries are bought.

When I was the lead fiduciary on a multiple employer plan that was rocked when the previous fiduciary was accused of embezzling money from other plans, I thought I should have a say which third party administrator we should use. I thought that even after making only $125 on the plan and being named in a lawsuit. So I stepped aside and started my own multiple employer plan.
When I was Vice President of my synagogue and I did more than a proportionate part of the work, I thought I should have a say in which other vice presidents get nominated. The fact that they were bringing back a former President as Vice President who did nothing to increase membership, did nothing to improve the Hebrew School and negotiated a terrible contract with the caterer got me upset. I wasn’t consulted and I just didn’t want to work with him because his priorities were different than my own since he had zero interest in increasing our membership base and was only concerned with cutting costs. So I quit.

I’m not saying that you should quit what you’re doing, but that when you do a disproportionate amount of the work and you’re not happy with the way the business is being conducted, you should have some say.

As far as the Patriots go, Parcells quit and they hired Pete Carroll who didn’t work out after 2 years. Then they hired Parcells disciple Bill Belichick and gave him a say in how the groceries are bought. 6 Super Bowl wins later, Parcells was right even though it worked out for his disciple instead.
Plenty of virtual events. just booked.

Now that Spring is almost here, we are booking some live virtual events.

That 401(k) Virtual Bunch, our plan provider interview show, returns with 3(16) Administrator Dan Venturi on Thursday, March 11th at 4pm EST. It's free and signup is here.

On Monday, May 10th at 4pm EST, we will have a special episode of That 401(k) Virtual Bunch with Congressman Jamie Raskin (D-MD), who had to cancel his appearance for That 401(k) National Virtual Conference, because of theimpeachement. This event is free and signup is here.

On Friday, April 9th at Noon EST, That 401(k) Virtual Conference 10 will be live. For 2 hours, learn how to increase your book of business from some great 401(k) providers.

To sign up, click here.

Anyone who commits to be a sponsor of That 401(k) National Virtual Conference in 2022 will speak at one of our 2021 events for free. First come, first serve. For more info, contact us here.
We will do it again virtually in 2022.


That 401(k) National Virtual Conference this January was such a hit, we will do it again for 2022. It's far easier to have dozens and dozens of advisors to show up for an event virtually, instead of asking them to take 4 days out of their life and thousands of dollars to attend an event elsewhere.

That 401(k) Virtual Conference will be Thursday-Friday, January 27-28, 2022.

This virtual event will have it all: great presentations to help grow your 401(k) business and a couple of celebrity guests.

Attending the event for two days will start with start at an early bird fee of $20.22. That price will increase by 50% in the Fall.

To sign up for the event or get more information, click here.

For information on sponsoring the event, click here.

To see some my interview with Walt Frazier from the past Conference, click here.

To see some of my interview with Dwight Gooden from the past Conference, click here.