Previously when a company I worked for changed plans the company was falling apart and closed about 2 yrs later.
Great West is a big player. I wouldn't worry about the company not being strong enough to handle a 401(k) platform.
Their general reputation in the industry is one of reasonable costs and good investment choices. You can find out more about Great West on Wikipedia here: http://en.wikipedia.org/wiki/The_Great-West_Life_Assurance_Company
If your company is changing plans, it is likely that they went through a due diligence process and had several offers on the table. Recent rulings by the Department of Labor have caused the fees inside employer retirement plans to become much more transparent. Whether the plan change will be beneficial to you will ultimately depend upon the terms of the agreement between Great West and your company. However, as to your initial question - Great West is part of an international conglomerate and I wouldn't be too concerned about whether or not they will close or "go under."
Jon Castle http://www.WealthGuards.com
Joanne As Jonathan said Great West has a large number of retirement plans and they should not be a concern. The question is why the change, you should receive a new "summary plan description" when the changover happens. Just make note of any changes in the new plan versus the old and inquire during the enrollment meetings. Good luck Mark Schreiber CPA
Joanne - I wouldn't be concerned if your company changed the 401k plan from Prudential to Great West. In fact, you should be excited! The fact that your company took the time to do the due diligence to find out if they could get a "better" plan (which I assume they did since they are changing), means they are paying attention and looking out for you as an employee and plan participant. In regards to the health of your company, I don't think a 401k plan change can be an indication your company is going to go out of business. In regards to the new plan and how it affects your retirement assets be sure to do your own due diligence to find the best investments to meet your needs and ensure you understand it so you make the proper investment choices. Take care - Marcus
Joanne Good for you for being concerned. I would go to HR and start to ask some questions. For example what other providers where considered? Do you have the documented prudent process you used to determine who the new provider would be? Who makes up the Investment Policy committee that makes these decisions? How does an employee like myself get involved? Do we have a broker or advisor on this plan if so did they get paid a Finders Fee for this switch? Any we using their retail or Institutional platform? what are ALL of the fees associated with our new provider both direct & indirect? The plan is set up for the Sole Benefit of you the participant so you are entilted to answers to all of these questions. I encourage you to stay concerned until your recieve all the answers.