Manning & Napier senior vice president Shelby George calls it a ‘wild, wild west’ for lawyers and litigation, and it’s not slowing down.
In this brief interview at the NAPA 401(k) Summit in Las Vegas, John Sullivan from 401k Specialist speaks with Shelby George, Senior Vice President of Advisor Services at Manning & Napier, about the current landscape of 401(k) and 403(b) fee litigation.
George emphasizes that while media attention around retirement plan litigation may have diminished, the legal activity is still very much active—and expanding. Lawsuits, which were initially focused on larger corporate 401(k) plans, are increasingly affecting smaller plans and have even started entering the 403(b) space (typically used by non-profits and educational institutions). She describes the current environment as “almost the Wild West” in terms of who is being targeted and the variety of legal challenges being raised.
The conversation shifts to fiduciary responsibility, where George stresses the critical need for a robust due diligence process. It’s not just about choosing reputable fund managers anymore; fiduciaries must carefully assess every decision, including asset classes, share classes, and investment vehicles offered in a plan. Even small oversights can open the door to litigation.
When asked if any specific products better serve fiduciaries, George avoids recommending any blanket solutions. Instead, she reiterates that the decision-making process should be tailored to each plan’s unique participant needs. However, she does highlight that Collective Investment Trusts (CITs) are often cost-effective and increasingly relevant.
The discussion concludes with an emphasis on customization, fiduciary care, and participant-centric planning as the most defensible strategies in today’s evolving retirement plan environment.
Key Takeaway:
Litigation risk in retirement plans is growing and diversifying. Fiduciaries must be proactive, process-driven, and participant-focused to minimize exposure and serve their clients effectively.