Universities Accused of Mismanaging Employees’ 403 b Plan

Many universities have been under a microscope lately as employees are paying closer attention to how their 403 b plan for retirement is being managed.

Employees at a university may have a different type of retirement plan than those at other businesses. Because a university is a non-profit institution, an account known as a 403 b plan is available to employees. A comparable plan administered by for-profit businesses is a 401 k plan.

How Does a 403 b Plan Work?

A 403 b plan works by having the employee select an amount of money to be withdrawn from his or her check. This money is deposited into an account called a 403 b plan.

This money is managed by fund administrators hired by the employees’ place of employment, which is in this case, a university. Employees have the right to expect that their money will be handled well and invested to the best possible advantage.

However, sometimes this is not the case. Certain universities have been accused of either mismanaging funds or simply not paying close attention to fees and other things to the disadvantage of the employees.

Some universities, such as Yale, MIT, NYU, Duke University, Johns Hopkins, the University of Pennsylvania and Vanderbilt University have all been accused of breaching their fiduciary duty according to Physicans’ Money Digest. Under the Employee Retirement Income Security Act, or ERISA, universities are obligated to take better care of their employees’ investments.

These universities along with others have been hit with lawsuits claiming that the universities did not uphold their fiduciary duties and have allowed millions of dollars in fees to be paid by tens of thousands of employees.

Schools have been accused of permitting their employees’ 403 b plan to acquire fees that are unnecessary. If it is true that unsuspecting employees of universities are being hit with unwarranted fees on a 403 b plan, this can significantly reduce the worth of the investment account.

Those who are responsible for looking after the investments have a duty to manage the money well and look for the best possible investment options. They are obligated to be watchful, to keep accurate records and to make sure employee investors are not being charged too much in fees for their 403 b plan.

If it can be proven that those responsible for managing the funds have engaged in some kind of flawed investment selection including favoring their own interests over the interests of those who have invested money, participants in those funds may be able to get some of their money back.

If you are an employee of a university and contribute money to a 403 b plan, you may be entitled to legal compensation.

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.

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