Recently there has been a rash of lawsuits targeting University retirement plans. Many of these were coordinated and announced at the same time. The issues are pretty common across all cases:
- Not evaluating recordkeeping fees,
- Using mutliple custodians thus eliminating the ability to leverage economies of scale,
- Retention of historically poor investment options,
- Not conducting a competitive bidding process.
While the suits are in progress, these failures by well regarded institutions of higher learning can be informative. It is up to every plan sponsor to have a well documented prudent process for evaluation of investments, fees, & services. Trucker Huss has put together a well detailed piece here:
Whether for profit or not for profit, having a detailed process in place and utilizing an independent fiduciary is key. #401k #403b #fiduciary