Approved settlement ends ERISA class action lawsuit
A federal judge has approved a $330,000 settlement agreement in a class action lawsuit brought against the Investment Committee for Boston College’s 401(k) plans and the University by two former employees who claimed that the committee’s actions with respect to the plans had violated the Employee Retirement Income Security Act (ERISA).
The case, one of many ERISA class action suits brought against universities nationwide, was filed in June of 2022 by the two plaintiffs, who had participated in BC retirement plans offered through TIAA CREF and Fidelity Investments.
In a statement, Boston College said it entered into the settlement solely to eliminate the burden, expense, and distraction of further litigation, despite its clear contention that the lawsuit was baseless.
“Boston College believes that the lawsuit was without merit and that the University’s management of its retirement plans fully complies with the Employee Retirement Income Security Act. BC also believes that had the case proceeded to trial, the University would have prevailed and defeated the plaintiffs’ claims. The University takes pride in the generous benefit plans it offers to its employees, which include retirement benefits that are provided at a low cost and with exceptional levels of customer service, and which have consistently helped BC employees to achieve their retirement goals.”
Attorney James Fleckner of Goodwin Procter, LLP, which represented the University, said that BC believes strongly that it and its Investment Committee met their fiduciary responsibilities.
“BC and the Investment Committee had a robust and prudent process for evaluating the investments made available under its retirement plans,” said Fleckner. “Among other things, the committee engaged in regular negotiations to lower fees and monitored the retirement plans’ investments and fees with the assistance of its independent advisor’s regular, industry-standard benchmarking, to continually provide BC faculty and staff with reasonably priced investments and services to best allow them to prepare for retirement.”
United States District Court Judge William G. Young’s April 11 ruling granted Boston College summary judgment on many of the plaintiffs’ claims but allowed the case to proceed on two discrete issues. The settlement was approved by Judge Young in August.
The settlement proceeds, after fees and costs, will be distributed in accordance with the terms of the settlement agreement to class members in amounts proportional to assets they had in the 401(k) plans between January 2019 and June 2024. Settlement notices will be mailed on October 25.