Hello PLANSPONSOR readers! Retirement plan excessive fee litigation shows no end in sight; two more excessive fee suits were filed against universities this week. However, a new application aims to help plan sponsors negotiate better fees, and two reports show mutual fund expenses are trending downward. Enjoy this edition of PLANSPONSOR Weekend, and have a very happy long weekend!
The plan sponsor is accused of failing to leverage its size and sophistication to ensure a fair deal on recordkeeping for plan participants, among other claims.
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The university is accused of not negotiating a better price for recordkeeping and retaining high cost, underperforming investments, among other things.
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The plaintiffs say the plan’s terms reduce benefits using “Early Retirement Factors” and “Joint and Survivor Annuity Factors” which result in plan participants receiving less than the actuarial equivalent of their vested accrued benefit, as required by ERISA.
Based on the conversations industry advocates are having in Washington, none of the leadership in the Senate or the House opposes passage of the SECURE Act.
Bob Collie, head of research at the Thinking Ahead Institute, tells PLANSPONSOR version 3.0 will be customized by “hyper-customization and integrated whole-of-life wealth management” that takes into account all of a person’s savings.
