Our daily roundup of retirement news your clients may be thinking about.
MIT, NYU, Yale sued over retirement plan fees Lawsuits were filed against Yale University, the Massachusetts Institute of Technology and New York University after the institutions allegedly made their employees pay excessive fees for retirement plans, according to The Wall Street Journal. The suits, which highlight 403(b) retirement plans, claim the universities failed to follow the Employee Retirement Income Security Act of 1974 because retail mutual funds were stocked in their investment menus instead of lower-cost institutional versions of the same investments. There have been other court cases recently filed against companies regarding their own mutual funds in their 401(k) plans. Fueling this trend, according to experts quoted in the article, is a handful of multimillion-dollar settlements in 401(k) fee cases by companies such as Boeing and Lockheed, as well as a Supreme Court decision (Tibble v. Edison), which put retirement plans on notice that they have a continuing duty to monitor plan investments, including fees.
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