Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Many university employees are being saddled with excessive retirement plan fees and claim that their retirement funds have been mismanaged.
Those who are employed by a university often have a retirement fund known as a 403(b) account. A 403(b) account is similar to a 401(k) but it is offered by non-profit institutions.
Fund administrators who manage 403(b) retirement accounts for university employees are obligated under federal law to manage these funds to the best of their ability. However, some of these practices have come under scrutiny recently as employees have accused their plan administrator of charging excessive and unnecessary retirement plan fees.
If those in charge of managing the funds do not pay close attention to them, employees may lose out immensely in the long run. Small changes in retirement plan fees can add up to very large changes in one’s retirement account.
The things that universities must do to manage these funds well include seeking out low-cost investment opportunities, disclosing material information about the retirement plan such as investment methods and retirement plan fees, investing monies wisely, and monitoring the performance of funds and moving to better performing funds if necessary.
Because of this, universities must also pay close attention to the retirement plan fees their employees pay. Some employees have accused those who manage their funds of allowing them to pay excessive retirement plan fees for redundant record keeping services and other things.
The United States Department of Labor gives an example of just how detrimental excessive retirement plan fees can be for the university employee. They note that if an employee pays just one extra percent more in retirement plan fees over a 35-year working career, that employee will have 28% less in their retirement savings.
In these terms, if an account starts with a balance of $25,000 earning 7% a year over a 35-year time period, it would grow to $227,000 with .5% fees. If the same account had retirement plan fees of 1.5%, the account would only grow to $163,000.
If you are a university employee and are concerned that your retirement fund is being hit with excessive retirement plan fees there are some questions you can ask to ascertain your risk.
You may question if the fees for the mutual funds in your plan are comparable with others that are invested in the same assets. You may also question if those responsible for your 403(b) appropriately investigated whether there were lower-cost versions of the investments in your plan. Additionally, you may ask if there are other retirement plan fees that you are being charged.
If you are a university employee and you believe that you have been charged excessive retirement plan fees, you may benefit from speaking with an attorney.
Join a Free University Employee 403(b) Retirement Plan Class Action Lawsuit Investigation
If you believe your 403(b) plan fees were more than necessary, or that the investment options were otherwise imprudent, you may be eligible for a FREE class action lawsuit investigation and pursue compensation for these violations.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.