The Perils of a Multi-Vendor 403(b) Plan
A number of higher education institutions were named in 403(b) plan participant lawsuits. Many of the complaints cited the use of multiple vendors, which led to reduced scale and higher fees.
Prevalent issues in the multivendor 403(b) environment include a lack of vendor oversight, proprietary investment products, and pricing inefficiencies. What actions should 403(b) plan sponsors be taking to mitigate their fiduciary and legal risks?