403(b) Retirement Plan Fee Litigation: An Update
Retirement plan litigation continues to plague the retirement plan space. Earlier this year, we provided a comprehensive update on the status of the 403(b) retirement plan fee litigation. While only one new lawsuit has been announced (against TriHealth of Cincinnati), there have been some significant updates, including:
- The George Washington University litigation was dismissed
- The Johns Hopkins University litigation was settled for $14 million
- The trial court dismissal of the University of Pennsylvania litigation was partially overturned on appeal
- The New York University trial court decision in favor of the defendants was upheld on appeal
- The Allina Health lawsuit was settled for a yet-to-be-disclosed amount
- The Kaleida Health lawsuit survived a motion to dismiss
- The Norton Healthcare lawsuit largely survived a motion to dismiss (only a portion of one count was dismissed)
- The terms of the Vanderbilt University $14.5 million settlement were announced
The 403(b) Retirement Plan Litigation Status 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 charted and investments used in retirement plans. We provide an in-depth exploration of the claims in our series, Fiduciary Breach Lawsuit Issues. To read Topic 1: Active vs. Passive Investments, click here. To read Topic 2: Asset-Based vs. Per-Participant Fees, click here. Stay tuned to our website for additional articles in this series.
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: The information contained herein has been obtained from sources that are believed to be reliable. However, Cammack Retirement Group does not independently verify the accuracy of this information and makes no representation as to its accuracy or completeness. Information is as of the date indicated, based on the information available at that time.
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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