Chicago-based Rush University Medical Center agreed to pay $2.95 million to settle an ERISA lawsuit filed by four former 403(b) plan participants who alleged mismanagement of their retirement plan, according to an Aug. 2 report from Pensions & Investments.
The plaintiffs alleged ERISA violations due to charging "excessive" record-keeping and administrative fees and by offering an actively managed target-date series instead of a similar index-based target-date series fund.
According to the report, the defendants deny any wrongdoing.
"Defendants specifically deny any such liability or wrongdoing and state that they are entering into this settlement agreement to eliminate the burden and expense of further litigation," the report said.