A wave of lawsuits against large 403(b) plans run by universities, including NYU, MIT and Yale, across the country, tells other types of non-profits to “be forewarned,” says Sam Henson, vice president and director of legislative and regulatory affairs at Lockton. Hanson says plan sponsors should monitor their fee structures and potential lawsuits that may arise this year.
In 2016, the law firm of Schlichter, Bogard & Denton filed numerous lawsuits, on behalf of employees, against multibillion-dollar, university-sponsored retirement plans, claiming the universities allowed participants to be charged unreasonable expenses for plan administration and retained expensive, underperforming investments in the lineup, according to Henson.
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