Friday, November 25, 2016

Dear Greensboro and North Carolina; "Wells Fargo Employees Suing Over Retirement Plans

"Wells Fargo faces a new U.S. lawsuit claiming that it funneled more than $3 billion of employee retirement savings into expensive, underperforming proprietary mutual funds to enrich itself.

The proposed class-action lawsuit...accused the third-largest U.S. bank of “self-dealing and imprudent investing” by steering 401(k)contributions to its Wells Fargo Dow Jones Target Date funds.

Just like the City of Greensboro 
invests in ICMA-RC proprietary mutual funds

Just like the State of North Carolina 
invests in Prudential proprietary mutual funds

The lawsuit...seeks to recoup excess fees and unrealized profits stemming from Wells Fargo’s alleged breach of fiduciary duties to all 401(k) participants over the last six years, the complaint said.

A Wells Fargo spokesman had no immediate comment on Friday.

Neither did Mary Vigue

This proves Greensboro Mayor Nancy Vaughan is financially illiterate,
morally bankrupt and unfit to lead, along with Jim Westmoreland and Connie Hammond

...Target date funds, also known as lifecycle funds, blend mutual funds that invest in stocks, bonds, and cash, shifting the mix based on investors’ expected retirement dates.

Greensboro's City Council let ICMA-RC steal from the City's employees

According to the complaint, Wells Fargo’s target date funds cost 2.5 times more than similar funds from such rivals as Fidelity Investments and Vanguard Group.

Just like the City of Greensboro's 457 and 401k plans 

Just like the State of North Carolina's 401k, 403b and 357 plans 

...the difference reflected the layering of an extra set of fees to run the funds, on top of fees to manage the underlying indexed funds.

Despite this, assets allegedly grew in part because Wells Fargo made its target date funds a default investment option, and provided an “easy” and “quick” enrollment feature.

This “generated substantial revenues for Wells Fargo” and provided “critical seed money that kept the funds afloat by boosting market share,” the complaint said.

Just like the City of Greensboro employees
get taken in ICMA-RC proprietary funds

Just like the State of North Carolina and municipal employees
in Greensboro and Guilford County
get taken in Prudential proprietary funds

Meiners said employees could have earned $323 million more in returns in the five years ended June 30 had Vanguard target date funds been used.

Just like ICMA and Prudential profit,
but Greensboro's City Council was too stupid to figure it out

...Lawsuits targeting alleged retirement plan mismanagement are growing more common.

Boeing Co settled one such lawsuit for $57 million in November 2015, and several lawsuits targeting U.S. universities were filed this summer.

A California federal judge in August refused to dismiss another such lawsuit against Pacific Investment Management and other units of German insurer Allianz..."
Please help save $35,122,520 for City of Greensboro employees