Brown University became the 16th university sued over their two retirement plans. This class action lawsuit isn’t a surprise because ERISA litigators are crafty in developing litigation targeting expensive retirement plans.
The Brown University plans were ripe for litigation. Problem signs were having two recordkeepers (Fidelity and TIAA) handling one plan as well as too many investment options (177 were offered by Fidelity, 26 by TIAA) offered under that plan.
Private universities aren’t exactly cost conscious, so it should be no surprise that they are being targeted for having plans that pay too much in fees. If I was involved with a private university, I would immediately contact an ERISA attorney and determine whether the fees that are being charged against their retirements plans are too much, as well as analyzing the amount of investment options, and any issues regarding revenue sharing payments. It’s very easy to see which type of plans that ERISA litigators would target.
