A federal court judge ultimately found that a participant in George Washington University’s two retirement plans had previously waived her right to sue for fiduciary breaches under the Employee Retirement Income Security Act (ERISA) in a previous agreement.
Tag: retirement plan fees
Plaintiffs in the lawsuit argue that passive funds would have resulted in better returns net of fees that the actively managed funds offered in the plan.
In support of its motion to dismiss a consolidated lawsuit, Fidelity argues that it is entitled to negotiate and collect fees from providers on its FundsNetwork, and that siding with the plaintiffs would be detrimental to retirement savers.
The company will pay $1.2 million, of which, $395,000 goes to class counsel.
The use of index funds by plans in the BrightScope Defined Contribution Plan Database increased from 79% of plans and 16.7% of assets in 2006 to 91.3% of plans and 33.2% of assets in 2016.
MFS has also agreed to pay $6,875,000 into a qualified settlement fund to resolve the claims of the court-approved class.
Fidelity investments is announcing a 14% price reduction on its target-date funds (TDFs), resulting in most of those funds having lower expense ratios than comparable Vanguard index target-date funds.
The less than $250 million plan is accused of failing to employ a prudent and loyal process in evaluating investment and administrative fees.
However, in a dissenting opinion, Senior Judge Jane Richards Roth says cases such as this one should be carefully scrutinized in order not to permit implausible allegations to result in a large settlement, under which a substantial portion of the funds are diverted to attorneys’ fees.
However, the 9th U.S. Circuit Court of Appeals did remand back to a district court the calculation of interest on the $7,367,382.13 in damages awarded.
Aside from monetary relief, the settlement calls for Vanderbilt to issue a request for proposals (RFP) for a new recordkeeper and stipulates factors to consider when evaluating funds in the 403(b) plan’s investment menu.
The union plan’s board of trustees has agreed to pay $8.75 million and issue a request for proposals for recordkeeping and administrative services.
Particularly in the small- and mid-sized plan segments, industry analysts tend to agree that the prevalence of partially bundled plans will likely remain prevalent for some time, in part because recordkeepers are facing fee compression.
In addition to a $23.6 million payment, the settlement agreement includes additional terms relating to a review of investment options in the plan and conducting a request for proposals (RFP) for a new recordkeeper.
The question in the lawsuit, according to a federal judge, is whether the plaintiff has standing to sue, for one, because she signed a settlement agreement with the university, and also, the defendants claim, she has not proved harm in her challenges to investments used in the university's 403(b) plan.
Fidelity is accused of charging an illegal and undisclosed pay-to-play fee that Fidelity extracts from investment companies that wish to ensure their products are marketed and sold through Fidelity.
A federal judge made this decision in allowing Massachusetts Institute of Technology’s motion to strike plaintiffs’ demand for a jury trial in a suit alleging breach of fiduciary duties and prohibited transactions.
While total plan costs have declined for most plan sizes, the latest 401k Averages Book continues to show smaller plans pay higher fees than large plans.
A lawsuit contends that kickback payments Fidelity requires from investment funds bear no relationship to the cost or value of services provided and are a replacement for declining amounts of revenue sharing payments received by Fidelity as a result of the increasing use of passive mutual funds, institutional and R6 share classes of mutual funds and collective trusts.