Bloomberg Law
July 15, 2022, 1:47 PM

Maryland University’s Health System to Face Retirement Plan Suit

Jacklyn Wille
Jacklyn Wille
Legal Reporter

Former University of Maryland Medical System employees can advance the entirety of their proposed class action claiming the health system’s retirement plans offered overly expensive investment options, including a poorly performing stable value fund, a federal court said.

The employees’ allegation that 15 of the plans’ funds could have been offered in cheaper and better performing share classes states a valid claim for fiduciary breach under the Employee Retirement Income Security Act, Judge Julie R. Rubin said in an opinion docketed Thursday. The health system argued these higher-cost share classes helped the plan by offsetting administrative expenses, but the employees ...