403(b) Curriculum Library

403(b) Retirement Plan Fee Litigation: February 2021 Update

As the COVID-19 pandemic wears on, existing 403(b) retirement plan fee litigation has seen a decline in activity. However, since our last update in September, there have been a few significant updates of note:

  • A new lawsuit against Piedmont Healthcare was filed. This is the first of its type, since the plan in question has since been terminated, due to Piedmont Healthcare’s acquisition of Columbus Regional Healthcare.
  • A new lawsuit was filed again Barnabas Health in September of 2020.
  • Georgetown University’s previously dismissed lawsuit was sent back to the trial court on appeal to determine whether the plaintiffs could file an amended complaint.
  • The University of Pennsylvania settled for $13 million in January of 2021.
  • Norton Healthcare settled for $5.7 million in December of 2020.

The chart below provides detailed information on each case.

The claims in these lawsuits cover a broad range of topics and issues. However, most are focused on the fees charged and investments used in retirement plans. We provide an in-depth exploration of the claims in our series, Fiduciary Breach Lawsuit Issues.

While not all claims are successful, in order to manage risk, plan sponsors should understand the issues and keep track of the litigation surrounding retirement plans.

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.

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