It should be no surprise that the rampant uptick in 401(k) litigation is also going to venture into the 403(b) world.
Four class action lawsuits were filed against MIT, New York University, and Yale University. The cases against NYU and Yale involve their 403(b) plans and it was only a matter of time before these type of plans would be targeted.
As bad as how 401(k) plans were run, 403(b) plans are run far worse. They tend to be more expensive and more poorly run than their sibling 401(k) plans. There isn’t as much competition in the 403(b) world and that’s why annuity and insurance company with more expensive proprietary products dominate the space to the detriment of their plan participants.
I can’t tell plan providers what to do, but if they have a good service at a reasonable fee, it would make sense to explore that 403(b) space for the benefit of themselves and their potential clients.