Columbia Settling Retirement Plan Lawsuit
Columbia University in New York plans to pay $ 13 million and make changes to the way it manages its retirement savings to resolve a class action lawsuit.
Details of the settlement were recently released in a lawsuit in the US District Court in New York, Pensions & Investments reported. The sides announced a preliminary agreement in April with no common terms.
It concerns two lawsuits filed in August 2016 that were later consolidated. Plaintiffs alleged that the university and its trustees charged inappropriate recording fees and invested in two low-performance 403 (b) retirement plans.
Columbia does not agree with the allegations, but is happy to put the case behind them, said the University of Pensions & Investments in a statement. A lawyer representing the plaintiffs told the publication that the settlement terms would improve retirement benefits for university employees and retirees.
The lawsuit against Columbia was part of a lawsuit filed in 2016 because pension plans at wealthy universities were charging employees inappropriately and excessively. By last year, several of these lawsuits had been settled, ranging from $ 3.5 million at Brown University to $ 18.1 million at the Massachusetts Institute of Technology.