This excessive fee case in which Columbia University allegedly selected and retained expensive and consistently sub-par performing funds and incurred duplicative administrative fees between two recordkeepers, has reached settlement. The amount of settlement totals $13 million. Non-monetary provisions include the hiring of an independent consultant to obtain competitive bids for recordkeeping services within the next three to four years, maintenance of the lowest share class of investments for the Plan, and prohibition of the recordkeeper from using participant data to cross-sell non-retirement plan services. Columbia University denies liability for the claims despite the settlement. Of note, post filing of the lawsuit, the plan fiduciaries did consolidate the plans’ administrative services, with a fixed fee, and any revenue sharing returned to participants.
www.plansponsor.com; May 24, 2021; www.businesswire.com; May 21, 2021.