A number of lawsuits have been filed across the country against some of the most prestigious universities over high fees for retirement plans. The most recent lawsuit was filed this month on behalf of 24,000 faculty and staff against Johns Hopkins University.
According to the complaint, Hopkins employees lost at least $35 million in excessive fees over the last six years. It also alleges the university retirement plans had too many investment options overwhelming employees, some of which were duplicative; used multiple retirement plan record keepers; and included funds that were “historically underperforming”. Other Universities currently involved in similar litigation include Yale, NYU, University of Pennsylvania, Vanderbilt and Duke.
Retirement Plan Lawsuits on the Rise
In 2015, in the case Tibble v Edison International, the U.S. Supreme Court ruled that fiduciaries of 401(k) retirement plans have an ongoing duty to monitor investments. Since the ruling, numerous cases have been filed, not only against universities, but against large American corporations including American Airlines, Novant Health and more.
Whether you work for a large or small corporation, even the best employee benefit plans can face tough questions, be misleading or confusing. At Marcellino & Tyson, we have a team of experienced attorneys who represent employees in matters of Employee Retirement Income Security Act, also known as ERISA. If you or someone you know is in need of an employment law attorney, please contact us for a consultation.