Navigating Plan, Provider Changes

Plan sponsors seeking an easy move between service providers should maintain clean participant census data and transparency with their support teams, panelists said at the 2026 PLANSPONSOR National Conference in Nashville, Tennessee, on Tuesday.

During the event’s “Navigating Plan and Provider Changes” session, Leah Sylvester, executive partner in and president of retirement plans at Shepherd Financial, said it typically takes between 90 and 120 days from the minute a plan sponsor says, “I’m ready to make a change” to when that sponsor’s plan goes live with the new provider.

The 30-day difference stems from how prepared the sponsor is, Sylvester explained. Supplying participant census data to a new provider, for instance, falls on the sponsor’s shoulders. Sylvester said she recommends sponsors be prepared to have pre-review calls with service providers about how their plan operates.

Having accurate data and payroll systems set up correctly are among the steps a sponsor can take to help minimize transition time, said Erin Breit, an assurance principal of employee benefit plans at BDO USA.

Breit, who audits plans as part of her job, recommended that sponsors keep their auditors “in the know” when the plan is in the process of switching providers.

Sylvester added that sponsors should make sure their “key support” staff, such as the company’s human resources, finance and communications departments, are in the know about the change, too. External partners such as a plan’s Employee Retirement Income Security Act counsel and advisers should be aware as well.

Bouncing Back from Errors

When sponsors make mistakes, Breit said she likes to see documentation of how the sponsor corrected the error. She does not require sponsors to follow specific methods to make corrections, such as hiring outside legal counsel. For her, it is more about the process of fixing the mistake.

“We’re there to help you have a compliant plan, not [to] penalize you,” Breit said.

When plans merge, sponsors sometimes fail to understand that errors in one plan become issues in the merged plan. Late contributions and definition-of-compensation mistakes are examples of errors that can carry into new plans and need to be corrected promptly, once identified, Breit said.

Value From a New Provider

Staying compliant during the provider switch is crucial, but sponsors should also not lose sight of the reason they are changing providers, the speakers suggested. David Levine, a partner in the Groom Law Group, said sponsors should figure out early what they want in a new provider.

“What’s important to you?” Levine asked. He suggested some sponsors might prioritize quick customer service, an improved website or excellent fraud prevention measures.

Sponsors need not make their vendor choices all about cost, either. Some sponsors may want on-site education, for instance, which is not necessarily the cheapest option.

“If your top choice … is not the one with the lowest cost, one thing I would encourage is … for you to negotiate that price,” Sylvester added. “Most providers are going in with a very sharp pencil, but they can get sharper.”