Is your retirement plan sponsor ERISA compliant?

In the recent Supreme Court case of Hughes vs. Northwestern University, current and former plan participants in two of the university’s retirement plans claimed that the academic institution was in breach of its fiduciary duty.

According to the National Law Review, the plaintiffs alleged that they violated their statutory duty of prudence by:

• Failing to monitor and control recordkeeping fees, resulting in unreasonably high costs to plan participants
• Offering mutual funds and annuities in the form of retail share classes that carried higher fees than those charged by otherwise identical share classes of the same investments

 

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