My local school board is run by a clique who see nothing wrong that some of their children got hired by the school district, hiring decisions approved by the board (minus the parent who abstains). The board and their minions will tell you that there is nothing wrong, but I believe anything that looks bad implies it\u2019s bad.<\/p>\n
Speaking of looking bad. Fidelity CEO Abigail Johnson sits on the board of MIT and Fidelity happens to be MIT\u2019s recordkeeper. Fidelity and Johnson have contributed to MIT. That\u2019s all Jerry Schlicter needed to file a class-action lawsuit on behalf of aggrieved participants. Do I believe that there is something wrong going between Fidelity and MIT? No. Fidelity is a large enough provider that they don\u2019t need MIT\u2019s business. However, it looks bad. Between that and the donations, it\u2019s OK for an ERISA litigator to think something is amiss. I think the biggest problem in the case is that it doesn\u2019t appear that MIT properly benchmarked their fees and based on some emails, MIT officials assumed there would be donations from Fidelity if the plan wasn\u2019t pushed top TIAA or Vanguard. Some dumb emails from MIT officials don\u2019t prove Fidelity did anything bad, it\u2019s just evidence that MIT might have been going out to business for themselves by using the 401(k) plan as a possible carrot for donations from Johnson and Fidelity.<\/p>\n
What does it mean? I think Schlicter has enough issues to beat back a summary judgment motion by MIT.<\/p>\n
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