A growing number of lawsuits filed against retirement plan sponsors claiming a variety of fiduciary mistakes from excessive fees and poor investments in retirement plans.
Recently, there have been a number of massive settlements against employers for excessive-fees.
Surprisingly, even employees working for the asset managers and retirement plan providers are suing their employers... and winning.
Lack of transparency & disclosure in revenue sharing arrangements and indirect compensation.
Investment conflicts due to providers offering their own funds. Often times, the sponsor is not fully aware of the extent of the conflict.
Unfair revenue sharing practices - participants’ plan investments are being inequitably affected by revenue sharing rates & fee allocation.
Acts as a 3(21) or 3(38) Investment Manager to relieve the Plan Sponsor of all responsibilities and liabilities associated with investment selection and monitoring.
Work directly with the Plan Sponsors to develop and implement initial and on-going financial education coaching for participants
Conducts on-site reviews with the Plan Sponsor’s retirement Committee with investment performance evaluations performed quarterly.