In 2011, Walmart and its retirement Plan Administrator Merrill Lynch agreed to pay $13.5 million to settle a class-action lawsuit that alleged that both parties breached their fiduciary duty in making decisions about the plan that were not in the best interests of the participants and their beneficiaries.
The basis of the suit was that Walmart and Merrill Lynch chose funds that had higher fees when funds with less expensive fees were available. There were also complaints about the limited quantity of funds to choose from on the plan (10).
So how do you decrease the likelihood that you, as a Fiduciary, would be successfully sued for not acting in the best interest of the participants in your retirement plan? By evaluating the quality of your fund lineup!
After watching this video, you’ll learn:
- the dangers of having too many or too little investment choices
- why you should monitor and be fully aware of the individual fund expenses
- what policy every plan should have in place