The lawsuit challenges the use of actively managed funds over passive funds and the use of higher-cost share classes, among other things.
Tag: retirement plan fees
Pentegra Retirement Services and other plan fiduciaries are accused of failing to make sure fees are reasonable and acting in Pentegra’s, not plan participants', interest.
The lawsuit is one of many filed recently claiming that the use of an index suite of Fidelity TDFs is more prudent.
Allegations in the lawsuit mirror those of the many excessive fee suits filed against retirement plan sponsors.
The case against B. Braun Medical contains allegations similar to those in many complaints filed this year.
The allegations basically mirror those included in the long list of excessive fee suits filed.
Prime Healthcare Services is one of the latest targets of an ERISA 401(k) excessive fee suit.
Defendants are accused of failing to use the lowest cost share class for many of the funds in the plan and failing to consider CITs and index funds as lower-cost alternatives.
McKinsey & Co. and an RIA it owned were accused of ERISA violations that included prohibited transactions.
The lawsuit challenges fees for recordkeeping, target-date funds and stable value funds, as well as fees paid to service providers to the health care system's 403(b) plan.
The firm was also charged with mutual fund share class violations.
Though similar to other lawsuits, arguments about excessive recordkeeping fees are featured early and prominently in the complaint and strongly criticize the recordkeeper, even though it is not a defendant in the case.
The lawsuit also accuses plan fiduciaries of failing to monitor total plan costs.
The lawsuit argues that while the TDFs in the plan are CITs, they are private label CITs with much higher expense ratios than the typical CITs offered by JPMorgan.
The complaint calls out the warehouse club's use of "more costly ‘actively managed funds’ rather than ‘index funds’ that offered equal or better performance at substantially lower cost."
The agreement also calls for the university to issue an RFP for recordkeeping services and engage an independent consultant to review investments, among other things.
In other ways, the excessive fee lawsuit is identical to others filed by law firm Capozzi Adler.
In addition, it is waiving distribution and loan origination fees for COVID-19-affected participants and CARES Act-related plan amendment fees for employers through August.
The plan's investment adviser is also named as a defendant, accused of helping select and retain high-cost, poorly performing funds.
The lawsuit almost completely mirrors allegations in complaints recently filed by the same law firm.