403(b) Plan Sponsors, Beware of Excessive Fee Litigation

Kathy Lawler and Daphney Francois wrote an article, "403(b) Plan Sponsors, Beware of Excessive Fee Litigation," for Law360.  The article discusses a spate of class actions against universities that sponsor 403(b) plans and provides an in-depth analysis of allegations of fiduciary breaches under the Employee Retirement Income Security Act of 1974 relating to payments of excessive administration fees and failure to replace certain investment funds. Lawler and Francois offer insights on how sponsors and fiduciaries of 403(b) plans have responded to allegations, pointing out that the complaints serve as a reminder for others "to take a hard look at the design and administration of their plans."