NYU Retirement Plan Suit Trimmed by Judge but Moving Forward

New York University convinced a federal judge to dismiss several challenges to its retirement plans, but claims attacking the plans’ record-keeping fees and actively managed funds are moving forward (Sacerdote v. N.Y. Univ., 2017 BL 299499, S.D.N.Y., No. 1:16-cv-06284-KBF, 8/25/17).

The school must face claims that it acted imprudently under the Employee Retirement Income Security Act by allowing the record-keeping fees it paid to TIAA and Vanguard to get out of hand, a federal judge ruled Aug. 25. The plan investors also advanced claims that the plans included actively managed funds with no “realistic expectation of higher returns.” ...