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University of Maryland Excessive Fee Case

Participants in the University of Maryland Medical System (UMMS) 401(a) and 403(b) Plans have claimed excessive investment and administrative fees negatively impacted participants’ ability to grow retirement savings in the Plans. More specifically, the case addresses the inappropriate share classes utilized in the Plans, the use of mutual funds in lieu of lower cost CITs, selection of comparably poor performing funds relative to appropriate benchmarks and verses other available alternatives, as well as excessive recordkeeping fees, with per participant fees allegedly double what reasonable fees should be for similarly situated plans. The lawsuit also claims that the offering of the Prudential GoalMaker service directed investments into expensive investment products and those that paid kickbacks to Prudential, resulting in millions of dollars of lost retirement savings.

www.napa-net.org; July 26, 2021.