Why the recent surge of University lawsuits?

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:

  1.  Not evaluating recordkeeping fees,
  2. Using mutliple custodians thus eliminating the ability to leverage economies of scale,
  3. Retention of historically poor investment options,
  4. 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:

New Wave of Retirement Fee Litigation: The University 403(b) Lawsuits

Whether for profit or not for profit, having a detailed process in place and utilizing an independent fiduciary is key.  #401k #403b #fiduciary