In addition, a federal judge dismissed a third complaint against NYU—naming its adviser as a defendant—as a duplicative action.
Tag: retirement plan fees
Just as another court did in a similar complaint against John Hancock, brought by the same plaintiffs, the 9th Circuit ultimately found Transamerica was not acting as a fiduciary when negotiating fees and collecting those fees.
One point the appellate court clearly noted is that the plaintiff did not allege that the new company failed to pay him any benefits he was owed.
Complaints against individual defendants, however, were not dropped.
The plaintiffs claim plan fiduciaries repeatedly failed to monitor the share classes of mutual fund investments and to substitute less expensive share classes of mutual funds for more expensive ones.
Roughly four in five retirement plan participants said it would be at least somewhat useful to have additional information about investment fees, according to research from The Pew Charitable Trusts.
The lawsuit suggests Nordstrom should have offered managed accounts or collective investment trusts to participants in its 401(k) plan.
Noteworthy about the case is that a challenge to fees provided to the recordkeeper via an arrangement with Financial Engines is filed against the plan sponsor and not the recordkeeper as in other suits that have been dismissed.
Michael Barry, president of the Plan Advisory Services Group, discusses issues with suggestions for reducing retirement plan fees.
A lawsuit alleges that asset-based fees led to the plan paying $1,819 per participant for recordkeeping services in 2015.