Excessive Retirement Plan Administrative Fees Could Cheat University Employees

Legal investigators are looking into allegations of excessive retirement plain administrative fees for university employees who suspect their retirement funds may be mismanaged. When retirement funds of employees are not properly managed, then life after work could be devastating.

Employees who think their retirement funds are mismanaged may be able to file a retirement plan lawsuit against the plan administrators. Recently, some employees are concerned that the administrators of their university retirement plans may be financially cheating them with excessive retirement plan administrative fees.

Large retirement plan administrative fees that are overpriced and unnecessary can cost employees millions. In addition, universities could be neglecting the employee’s 403(b) plan and not confirming whether or not the investments the retirement funds perform well.

According to the U.S. Department of Labor, employees who pay just over 1% more in fees over a 35 year career will have 28% less savings after retirement. Furthermore, these fees an influence the account balances of participating employees and greatly affecting their retirement funds.

Employees affected by improper retirement plan administrative fees could possibly petition their respective universities to improve their plan administration. For example, an account starting with $25,000 and earning an average 7% per year over 35 years would grow to $227,000 if the fees were only 0.5%. However if the fees cost 1.5%, the final amount would be $163,000.

Overview of Retirement Plan Administrative Fees Allegations

University employees often receive retirement plan under section 403(b) of the federal tax codes. These plans can be offered by nonprofit organizations, and they are similar to the 401(k) plans sponsored by for-profit companies.

According to federal law, the administrators of universities’ 403(b) retirement plans must administer them in their employees for their best interests. More specifically, these universities are obligated to:

• Use all possible methods to offer employees low cost investment opportunities
• Disclose any information in regards to retirement plan administrative fees and other possible hidden costs
• Invest their employee’s money appropriately
• Closely monitor the performance of the investments, and take preventative measures like transferring funds from poor performing investments to better suited ones

Certain universities have pension funds worth billions, but have been allegedly failing to use their financial influence to get better retirement plans for their employees. University employees could have numerous investment opportunities with their retirement plans, but some may be too expensive to be considered beneficial.

These alleged retirement plan administrative fees have been reportedly taking advantage employees, especially through the retirement plan’s application fees. Potential claimants can consult with a knowledgeable financial services lawyer to determine their eligibility for a retirement fund fees lawsuit.

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.

Join Now