There has been an influx of participant lawsuits against private universities for the 401(k) and/or 403(b) plans they sponsor for their employees. That’s like shooting fish in a barrel.
Private universities are being sued because the claims are that the 401(k) plans and 403(b) plans that they sponsor are just way too expensive. Let’s be honest, private universities and colleges aren’t exactly experts when it comes to reasonable costs. I’m still paying off my student loans 18 years after I graduated school.
When you have little concern about costs in your “business”, why would you have concern about the costs of your retirement plan? I can vouch through 18 years of experience that the worst run retirement plans are usually run by businesses that are way too busy in running their own business and aren’t exactly concerned about the costs that they pass on to their clients. Just saying…
