During August 2016 a slew of large universities were faced with lawsuits, alleging the schools did not satisfy their fiduciary duties under ERISA with respect to their defined contribution plans.

Although universities were the target of these particular lawsuits, fiduciaries of all 403(b) plans (including hospital plans) would be well served by reviewing their governance structure, and current and desired states, and making sure that markets are tested on a regular basis to ensure participant fees are market-competitive and reasonable.

This article, originally featured in Becker’s Hospital Review, provides action steps for plan sponsors to reduce litigation risk and remain in compliance with 403(b) plan rules.