In addition to a monetary payment, the university has agreed to structural changes to its 403(b) plans.
Tag: retirement plan fees
The suit challenges fees paid to provider TIAA.
The bank admitted that because of “a system error,” revenue sharing payments were not credited to the retirement fund, but says the error has been fixed.
Only 49% said they had read their fee disclosure in the prior year and had understood it; 44% said they had not read it; and 7% said they had read the disclosure but did not understand it.
A federal district court judge denied dismissal of most violation of duty of prudence claims.
The university also asks that the plaintiffs not be able to attempt to use evidence that their prudent measures and conduct that occurred subsequent to the plaintiffs’ filing of the lawsuit proves that prior conduct was imprudent.
The defendants argued that a court decision in a self-dealing lawsuit against Wells Fargo supports their motion to dismiss their suit.
Plan sponsors who have already submitted an Application for Determination for Terminating Plan in 2018 will receive a refund of $700.
A federal district court judge ruled a new complaint alleging Voya Financial and Voya Retirement Advisors engaged in prohibited transactions in violation of ERISA through a service arrangement with Financial Engines was futile because it wouldn’t survive a motion to dismiss.
In addition, a federal judge dismissed a third complaint against NYU—naming its adviser as a defendant—as a duplicative action.
Just as another court did in a similar complaint against John Hancock, brought by the same plaintiffs, the 9th Circuit ultimately found Transamerica was not acting as a fiduciary when negotiating fees and collecting those fees.
One point the appellate court clearly noted is that the plaintiff did not allege that the new company failed to pay him any benefits he was owed.
Complaints against individual defendants, however, were not dropped.
The plaintiffs claim plan fiduciaries repeatedly failed to monitor the share classes of mutual fund investments and to substitute less expensive share classes of mutual funds for more expensive ones.
Roughly four in five retirement plan participants said it would be at least somewhat useful to have additional information about investment fees, according to research from The Pew Charitable Trusts.
The lawsuit suggests Nordstrom should have offered managed accounts or collective investment trusts to participants in its 401(k) plan.
Noteworthy about the case is that a challenge to fees provided to the recordkeeper via an arrangement with Financial Engines is filed against the plan sponsor and not the recordkeeper as in other suits that have been dismissed.
Michael Barry, president of the Plan Advisory Services Group, discusses issues with suggestions for reducing retirement plan fees.
A lawsuit alleges that asset-based fees led to the plan paying $1,819 per participant for recordkeeping services in 2015.