Universities and Retirement Plan Lawsuits-What Gives?
There has been a lot of buzz in the media recently about lawsuits targeting the retirement plans of colleges and universities. Participants of these plans are filing complaints that the universities and their plan sponsors failed to fulfill their fiduciary duties of administering the plans.
This can present a huge problem for higher education institutions and their plan sponsors. And as this issue progresses, more universities may face lawsuits with the potential to cost them significantly.
One way plan sponsors may reduce vulnerability to litigation is by streamlining plan operations by incorporating automatic rollovers into their retirement plans. When plan sponsors add automatic rollovers to their plans, they move certain small balance accounts of $5,000 or less into rollover IRAs. These plan participants may have small balances, but their impact can be significant. Doing so may remove costs and liabilities from retirement plans.
You can learn more about our automatic rollover solution and how it can help your companies reduce costs and liabilities to retirement plans by visiting our learning center.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.