There have been around 20 class action lawsuits filed against universities for high cost 401(k) and 403(b) plans. The lawsuits are like shooting fish in a barrel because when you think about it, low costs and higher education tend to be mutually exclusive. I would assume most private universities don’t have the vigilance that plan sponsors do in the private sector in being concerned with fiduciary duties and monitoring the reasonableness of fees.
Thee private universities also tend to have their plans administered by some of the legacy partners of the non-ERISA 403(b) marketplace where low fees don’t exist.
Private universities are easy picking for the filing of a class action lawsuit, but time will tell whether they’re going to settle or lose at trial.