Consulting Firm Question

[jstorch]

Anyone familiar with ABC Co, Inc.? (edited by sitewide moderator)

A client claims ABC Co Inc. contacts them every now and then about providing a free independent review of their plan. According to the client, "they stress how our plan is not considered to be “valid” according to ERISA without a review."

I have not been able to verify that this is the actual language used by the sales rep. If anyone has any first-hand experience with ABC Co Inc, I'd appreciate a review.

[QDROphile]

I would be wary about working with anyone who sells fear, but only you can evaluate the pitch.

[masteff]

According to the client, "they stress how our plan is not considered to be “valid” according to ERISA without a review."

Just guessing...

Sounds to me like abuse of requirement in ERISA for plan fiduciaries to review plan investment options periodically. Is "ABC Co" an outside investment company? In which case, there is a reasonable probability they want to get inside the plan and figure out how they can recommend that the plans investments be moved to their company because they'll be able to offer lower expense ratios or higher returns or some such rationalization which will have the net effect of their gaining income off the plan's investments. I've seen it before; the bigger the company, the more they come out of the woodwork like this.

TANSTAAFL - There ain't no such thing as a free lunch