The University of Chicago Settles Retirement-Plan Lawsuit for $6.5 Million
From the Desk of Jim Eccleston at Eccleston Law LLC:
As a result of a lawsuit filed in May of 2017, the University of Chicago has agreed to pay $6.5 million to a class of plaintiffs over the mismanagement of its 403(b)-plan. The University of Chicago is the first prominent university to settle a lawsuit over allegations of retirement-plan mismanagement. There are currently 19 other pending lawsuits filed against universities across the country.
According to the complaint filed in federal court, the class of plaintiffs asserted that the University of Chicago allowed its plan participants to pay excessive record-keeping and investment-management fees, which resulted in a depletion of their retirement savings.
In addition to the monetary payment, as part of the settlement agreement, the University of Chicago has agreed to make structural changes to their 403(b) plan. More specifically, the University of Chicago has promised to not increase record-keeping fees for at least three years as it continues to attempt to reduce the per-participant rate for its retirement plan.
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