In this case, filed in 2016, University of Pennsylvania fiduciaries to the $3.8 billion University of Pennsylvania Matching Plan – the University and the Vice President of Human Resources – allegedly breached their fiduciary duties, allowing excessive administrative and investment management fees in the Plan. The case history is storied, with the defendants prevailing in the lower court, losing on appeal, then proceeding to petition for a Supreme Court review, which was not granted. At this juncture, the case has reached a settlement amounting to $13 million, with the defendants admitting no wrongdoing or liability regarding the allegations. Additional settlement terms through a 3-year settlement period include but are not limited to ongoing fiduciary training, transitioning to a single recordkeeper with administrative fees charged on a fixed fee, per participant basis, as well as rebating excess fees back to participant accounts if not otherwise used to defray reasonable expenses of plan administration. Defendants are also required provide Class Counsel a list of the Plan’s investment options and associated fees, and a copy of the Investment Policy Statement for the Plan within a specified period of time at year end following the settlement period.
www.planadviser.com; January 15, 2021.
www.bloomberg.com; December 2, 2020.
www.napa-net.org; January 19, 2021.
www.planadviser.com; December 4, 2020.