Does Your University Employees Retirement Plan Have Excessive Fees?

Employees of universities often have their university employees retirement plan managed under a 403(b) account due to the university’s status as a nonprofit organization. This kind of account is similar to a 401(k) retirement account offered at many companies, but has some important differences as well.

The main difference between the accounts is that the administrative costs associated with a 403(b) are lower. Additionally, a 403(b) is also exempt from certain processes that are required under a 401(k).

Unfortunately, due to the difference in administrative processes, some administrators of university employees retirement plan setups have been accused of mismanaging the funds in the account. Plan administrators are supposed to act in the best interest of the employees and are required to make sure the following are in place:

• Actively monitor university employees retirement plan funds to ensure funds are removed from poor-performing products and are placed into better-performing products
• Ensure that investment opportunities are available for a low-cost to university employees retirement plan members
• Accurately disclose information to employees about their plan, including investment methods used by the plan administrator and any associated fees
• Sensibly invest funds in the university employees retirement plan

While plan administrators of many university employees retirement plan setups do follow the above guidelines, some have been accused of taking advantage of employees.

One way that plan administrators have been accused of taking advantage of employees through their university employees retirement plan is by the application of excessive fees. Some employees have been charged an excessively overpriced amount of fees due to poor practices leading to redundant record-keeping services.

Though they may seem small on a certain level, over the lifetime of the individual, these fees can add up to a huge amount that cuts into the university employees retirement plan funds that should have been available to the member.

For example, the U.S. Department of Labor estimates that a 1% increase in fees over 35 years of a plan member’s career can lead to a 28% reduction in retirement monies.

Additionally, universities may not appropriately be using their bargaining leverage to gain all the benefits when offering the university employees retirement plan. Universities should demand transparency and excellent value for the products they offer to their employees through their 403(b) partnerships.

How Do You Know if You are Paying Excessive University Employees Retirement Plan Fees?

The first step in determining if the fees you are paying in your university employees retirement plan are excessive is to find out the fees of your particular plan. Next, it is wise to inquire about similar plans to see how your fees associated with your plan compare to others. A number of financial planning websites on the internet can help members compare the fees of different retirement plans.

A number of universities are currently being investigated to determine if improper practices are being implemented for university employees retirement plans. If you believe your university employees retirement plan is being affected by mismanagement through excessive fees or through other means, you may be eligible to seek legal compensation. You may qualify for a free case review with an attorney to determine if you may be eligible to take legal action.

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