Not Covered, but

Tuesday, July 06, 2021

Private-sector retirement plans are covered by ERISA, a federal law that goes back to the 1970s. Since UC is a public institution, its retirement plans are not covered by ERISA. Nonetheless. a decision last Friday by the U.S. Supreme Court to hear a case involving Northwestern University (a private institution covered by ERISA) could have indirect effects on pension and retirement plan administration at UC.

The Northwestern case involves an allegation that the university charged unreasonable fees for administration of its 403b retirement savings plan. Whatever standards eventually emerge from that case could, and likely would, spill over into UC's savings plans. From the plaintiffs' brief:

The question presented is:

Whether allegations that a defined-contribution retirement plan paid or charged its participants fees that substantially exceeded fees for alternative available investment products or services are sufficient to state a claim against plan fiduciaries for breach of the duty of prudence under ERISA...

F u l l b r i e f a t h t t p s : / / w w w . s u p r e m e c o u r t . g o v / D o c k e t P D F / 1 9 / 1 9 1401/145935/20200619133321525_Hughes%20cert%20petition.pdf