Scores of claims against sponsors have almost universally claimed asset-based administrative fees are an inherent breach of ERISA. (Photo: Shutterstock)
Settlement agreements in lawsuits against sponsors of jumbo defined contribution plans are more often including stringent non-monetary provisions that restrict how recordkeepers charge for services.
A recent settlement in Tracey, et al., v. Massachusetts Institute of Technology secured $18.1 million in relief for a class of 16,000 plan participants. Plaintiffs' attorneys' fees of up to $6.5 million will be paid from the general settlement fund.
But it is the non-monetary provisions of the settlement that may have greater reverberations for sponsors.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
