PEO changes providers

[Guest Sieve]

PEO decides to change providers. Some of the employers using the PEO are relatively new to the relationship, and the change of provider causes the employee accounts of those employers to bear a deferred sales charge. As it turns out, the new provider will not cover those deferred sales charges. If the PEO also decides not to pay those deferred sales charges, would it be appropriate to spread those sales charges among all accounts (including even those whose employers will not suffer the sales charge) as an administrative cost resulting from the change in providers (under the theory that a few specific employers should not bear the brunt of a PEO's administrative decision to change providers)? Are there other solutions to this issue?

[Bird]

Just shooting from the hip but my gut says the surrender charges should be borne directly by the accounts that incurred them (not spread).

Frankly, in this day and age, there shouldn't be surrender charges and I wonder about the liability of the decision-makers; either the PEO making the investment choices and/or the employers who chose to join the plan. I know sometimes plans get stuck with old contracts and you just have to bite the bullet at some point...