fees not applied to participant accounts

This one is different.  401(k) plan was moved to a new platform.  A part of the agreement for investment advisor fees was to deduct a specified portion from the participant accounts on a quarterly basis.  This was properly disclosed to participants in timely notices.  Investment company failed to set up this fee deduction for six months.  Investment company's position on this:

"our position is to follow IRS correction principles of returning the plan to the state it would have been in if no error had occurred- in essence deducting fees from the participant’s accounts"

The investment advisors would rather forego the payment than deduct fees from participants.  I could not find anything that required a fix for something like this.  Anyone else have a similar situation?

27 minutes ago, DMcGovern said:

This one is different.  401(k) plan was moved to a new platform.  A part of the agreement for investment advisor fees was to deduct a specified portion from the participant accounts on a quarterly basis.  This was properly disclosed to participants in timely notices.  Investment company failed to set up this fee deduction for six months.  Investment company's position on this:

"our position is to follow IRS correction principles of returning the plan to the state it would have been in if no error had occurred- in essence deducting fees from the participant’s accounts"

The investment advisors would rather forego the payment than deduct fees from participants.  I could not find anything that required a fix for something like this.  Anyone else have a similar situation?

Never had this, but see no reason why the investment advisors can't send a renewed invoice for the first two quarters with a zero fee.

Thanks for your reply, Larry!  

Everyone stay safe and healthy out there