About 75% of large 401(k) plan sponsors would rather keep the assets of retired employees in the plan, rather than have these retirees roll over their plan assets into an individual retirement account (IRA), according to a PIMCO survey of 47 retirement plan advisory firms.

It’s clear that plan sponsors don’t know what they’re talking about. Sure, more assets may equal better fees for the plan, but who needs the headache? It’s hard enough to manage a plan with current employees, but why would anyone want to deal with the headaches of keeping track of retirees and making sure they get all the required notices?

Plan sponsors need to say goodbye when employees leave and hope they take their 401(k) money with them. They don’t need the challenges of dealing with former employees, especially with the Department of Labor cracking down on the huge issue of missing participants.