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403(b) plan participants drop ERISA lawsuit against Long Island University

Participants in a 403(b) plan run by Long Island University have dropped their ERISA lawsuit after having accused plan manager of having allowed excessive fees.

The three-sentence notice, filed Feb. 8 without explanation in U.S. District Court in Brooklyn, concludes the case of Mulligan et al. vs. Long Island University et al. "with each party to bear its own fees and costs."

Two participants in the 403(b) plan alleged that plan managers violated their fiduciary duties because they allowed record-keeping fees to be excessive. The record keeper, TIAA-CREF, was not named as a defendant.

The plaintiffs, who sought class-action status, said 403(b) plan managers should have solicited bids from other record keepers, failed to monitor and control fees, and failed to use the plan's asset size to negotiate lower fees.

The Long Island University Retirement Plan had $931.4 million in assets as of Dec. 31, 2017, according to the latest Form 5500 filing.