WOODSTOCK – District 200 has cleared its former retirement account administrator of liability for small errors the firm made before being dropped by the district after less than a year of service.
The district in December 2008 hired Gatekeeper Administration and Consulting LLC to ensure its 403(b) tax-deferred retirement savings accounts were in compliance with federal regulations. But Gatekeeper was unable to fulfill the terms of the contract, the district said, and was replaced in September 2009.
Several other districts – excluding District 200 – have since filed a class-action lawsuit against Gatekeeper alleging that the firm kept poor records and failed to send funds employees were entitled to. In District 200, Gatekeeper sent all appropriate funds to service providers but in some cases made payments late, costing district employees small amounts of interest, the district said.
“We found that all of them were sent but a few were held a few days longer than they should have been,” said Risa Hanson, District 200 chief financial officer.
The board voted Tuesday to clear Gatekeeper of liability for the errors. The 16 affected employees also will receive their long overdue interest, although none of those checks top $10.
Hanson said the district having to address what had otherwise been a dead issue was a byproduct of the class-action suit.
Since the district replaced Gatekeeper with CPI Qualified Plan Consultants Inc. in 2009, the 403(b) plan has been administered without issue.
“Gatekeeper became overwhelmed with the volume of clients they had,” Hanson said.
She said during the meeting that Gatekeeper sent letters to district employees who were owed money, leading to the district’s decision to sign a settlement agreement.