The lawsuit says plan fiduciaries failed to ensure reasonable investment fees and mismanaged revenue sharing to pay for administrative expenses.
The lawsuit alleges fiduciary breaches related to ensuring reasonable administrative and investment fees.
The markup hearing, punctuated by a unanimous vote to advance the legislation, demonstrated that retirement security issues are capable of bringing together members of Congress who don’t agree on much else.
The complaint says fees charged to participants in the plan were "grossly excessive" because they were not based on the services provided.
Participants of a terminated 403(b) plan say the plan sponsor's fiduciary breaches caused them approximately $4.6 million in losses.
The two items that may require an amendment relate to difficulty of care payments treated as compensation for 415 limits, and the application of cooperative and small employer charity pension plan rules.
The SECURE Act's provisions for pooled employer plans (PEPs) did not apply to 403(b) plans.
Parties agreed that a payment of $225,000 will settle the remaining claim in the case related to the share class of the TIAA-CREF Lifecycle Funds.
Parties in the lawsuit against Cornell University have asked for the trial on the one remaining claim in the suit to be vacated.
As in a lawsuit filed in July, the plaintiffs in the recent case challenge the use of an actively managed TDF suite over an index suite.
The lawsuit challenges fees for recordkeeping, target-date funds and stable value funds, as well as fees paid to service providers to the health care system's 403(b) plan.
The firm was also charged with mutual fund share class violations.
Defendants are accused of failing to leverage the size of the plan to negotiate for lower investment and recordkeeping fees, among other things.
The agreement also calls for the university to issue an RFP for recordkeeping services and engage an independent consultant to review investments, among other things.
The agency says it is postponing deadlines for certain time-sensitive actions required by these plans and others because of the COVID-19 emergency.
A federal judge noted that the pandemic will affect civil jury trials in the Southern District of New York “for a considerable and presently unknowable time to come.”
The agency says proper use of catch-up contributions will be an examination focus for 403(b) plans in fiscal year 2020.
The plaintiffs say there is additional evidence for their claims, “such as incorrect reporting on mandatory Department of Labor disclosures about the amount of administrative fees paid by [the] participants.”
More than a handful of university 403(b) cases have been settled.
The March 31 deadline for 403(b) plans has been extended to June 30; the April 30 deadlines for DB plans have been extended to July 31.