Northwestern University defended its retirement plans from a challenge brought by employees, saying the plans are designed to meet the needs of investors with different levels of sophistication and retirement planning objectives.
The school wants the U.S. Court of Appeals for the Seventh Circuit to reject a proposed class action claiming the plans offer expensive and poorly-performing investments and charge excessive and wasteful administrative fees.
The investors who filed suit want the court to adopt a “paternalistic approach to plan management, based on their own ideas of which types of investments are best for the average investor,” the school said ...