Compliance March 30, 2011

Northrop Grumman Plaintiffs Win Class Certification

A federal judge in California has certified as a class plaintiffs suing Northrop Grumman Corporation in an excessive 401(k) plan fee case.
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The decision by U.S. District Judge Margaret M. Morrow of the U.S. District Court for the Central District of California came in the long-running case naming the corporations and a number of individuals. The case was originally filed in September 2006.

Plaintiffs claimed the defendants violated their Employee Retirement Income Security (ERISA) fiduciary responsibilities by including in their retirement plans investment options for which plaintiffs claim the fees were too high.

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According to Morrow’s order, the class now includes all persons, excluding defendants, the Committees and/or other individuals who are or may be liable for the conduct described in the complaint, who within the period of the statute of limitations are or were participants or beneficiaries of the Northrop Grumman Plans who were, are, or may have been affected by the conduct set forth in this Complaint, as well as those who will become participants or beneficiaries of either Plan in the future.

Deals & People March 30, 2011

Musto Named JPAM Retirement CEO

J.P. Morgan Asset Management announced that David Musto will become the Chief Executive Officer of J.P. Morgan Retirement Plan Services (RPS).
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Musto succeeds current CEO Pamela Popp, who has taken on a new role as Head of Retirement Strategic Initiatives, where she is helping to drive the asset management division’s overall  retirement growth initiative.Musto and Popp report to Michael Falcon, Head of Retirement at J.P. Morgan Asset Management.  

Musto was most recently Chief Operating Officer of J.P. Morgan Retirement Plan Services, with responsibility for day-to-day business oversight and analysis in support of RPS’s long-term growth and efficiency goals (see “Musto Hands JPAM DCIS Reigns to Galateria“).  Prior to that, he was head of J.P. Morgan’s Defined Contributions Investment Solutions (DCIS) business. According to the announcement, his industry experience also includes leadership positions in the retirement and benefits businesses of Prudential Financial and CIGNA.  

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Popp has been with J.P. Morgan for 14 years, and her prior experience includes roles with American Century Investments and Hewitt Associates.

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