Preliminary settlement pending court approval has been reached in this case, with the University of Chicago to pay $6.5 million. Plaintiffs in this case alleged University of Chicago fiduciary violations through the selection, maintenance, and inadequate monitoring of certain investment options within the Plan, namely the CREF Stock Account and the TIAA Real Estate Account. Plaintiffs also claimed that excessive administrative and recordkeeping fees were paid, as the Plan employed two companies for such services, when one would have been more efficient and economical.
In April of 2018, the University of Chicago introduced a new investment menu for the $3 billion Plan, including elimination of the CREF Stock Account as an option for new contributions (existing monies can remain). The TIAA Real Estate Account was not removed.
www.planadviser.com; May 24, 2018.