Recently, lawsuits have been filed against eight private universities sponsoring defined contribution plans. These lawsuits allege that the universities paid excessive fees and failed to remove expensive, under-performing investments. These are the first lawsuits of their kind to target not-for-profit institutions, thereby demonstrating that such organizations are no longer insulated from legal actions.
To ensure you are meeting your plan fiduciary responsibilities, you should establish policies that address the following:
- Monitoring vendor performance and fees paid by the plan
- Monitoring investment options and reviewing investment performance
- Designating responsibility for performing such procedures to qualified individuals and ensuring they receive appropriate professional advice In addition, documentation of the performance of these procedures and designations should be retained.
If you have any questions, please contact our Albany office at (229) 883-7878 or our Atlanta office at (404) 220-8494.