Gucci's
caught up in a suit...without pinstripes.
Participants of
Gucci
America's $142.4 million dollar retirement plan filed suit back in 2017 alleging that the company selected investments for the plan that were too expensive and performed poorly. Employers who offer a retirement plan have a fiduciary responsibility to select investments that have reasonable fees and that are appropriate for their employees. This is kind of a big deal.
The suit centers around
Gucci
selecting investments that were more expensive than similar investments on the plan platform. In addition, plan participants also say that plan officials selected more expensive share classes of the funds they selected. The
Gucci
America retirement plan also used funds that were proprietary to the plan's record keeper, Transamerica and did not monitor the fees or performance of said funds...which participants didn't appreciate.
In the coming weeks, we will be kicking off the retirement edition of Glamsplain where we'll go in depth about employer-sponsored retirement plans, expense ratios and share classes. By the time we're through, you will know how to select investments in you plan, how to find out how much you are paying, what questions to ask the investment representative that comes to your office to help, how to determine how much you should contribute and how to best position yourself to hit your retirement goals.
Have a great weekend Savvies!
What topic would you like the StocSavvy team to Glamsplain?
