M.I.T., N.Y.U. and Yale Are Sued Over Retirement Plan Fees

Three prominent universities, the Massachusetts Institute of Technology, New York University and Yale, were sued on Tuesday, accused of allowing their employees to be charged excessive fees on their retirement savings.  The complaints allege that the universities, as the plan sponsors, failed to monitor excessive fees paid to administer the plans and did not replace more expensive, poor-performing investments with cheaper ones. Had the plans eliminated their long lists of investment options and used their bargaining power to cut costs, the complaints argue, participants could have collectively saved tens of millions of dollars.