Tyson Foods Employees Allege Excessive 401(k) Plan Fees

The plaintiffs’ complaint included a detailed comparison of allegedly similar, lower-cost recordkeeper fees for the plan with $3.2B in assets.

Tyson Foods Inc.’s retirement plan committee is the defendant in a class action complaint filed by three employees accusing the Arkansas-based meat production company for passing on to participant excessive fees for 401(k) recordkeeping done by Northwest Plan Services Inc.

The complaint, Ruebel et al. v. Tyson Foods Inc. et al., was filed Thursday in the U.S. District Court for the Western District of Arkansas. Plaintiffs are seeking class action status for the Tyson 401(k) plan that, by year-end 2022, had 67,276 participants and $3.2 billion in assets, according to BrightScope, which, like PLANADVISER, is owned by ISS STOXX.

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In the complaint, the plaintiffs allege that during the class action period from November 30, 2017, through the date of judgement, Tyson’s plan committee breached two fiduciary duties. First is an allegation of “violation of the duty of prudence against defendants” for “charging plan participants excessive total RKA fees.” Second is an allegation that defendants failed to “monitor fiduciaries responsible for plan administration with regard to plan total RKA fees.”

The first count argues that, among other allegations, the defendants paid “over a 75% premium per-participant for total RKA fees” at an average of $42 per participant.

The complaint contains analysis of what the plaintiffs called comparable plans, including those administered by Fidelity Investments, Alight and the Vanguard Group, with total fees between $20 and $32. It also aggregated those comparable plans to show that, according to its figures, Tyson Foods plan should have been charging around $27 per participant on average for the market at that time.

“Defendants should have lowered its total RKA fees by soliciting bids from competing providers and using its massive size and correspondent bargaining power to negotiate for fee rebates, but it did not do so, or did so ineffectively, during the class period,” the plaintiffs allege.

To argue the scale of the plan, the plaintiffs note that Tyson Foods’ plan had more participant than 99.98% of the defined contributions in the U.S., and more assets than 99.97% of plans.

The second count alleges a breach of fiduciary duty for “failing to monitor those individuals responsible for paying these unreasonable total RKA fees.”

The complaint does not name recordkeeper Northwest Plan Services or any other administrators or providers of the plan.

Neither Tyson Foods nor Northwest responded to requests for comment on the complaint.

Legal firm Euclid Fiduciary, which tracks retirement plan litigation, noted in August that excessive fee and investment imprudence litigation was tracking lower in 2023 than the year prior—but the experts also noted that the plaintiffs’ bar was getting more intelligent in their arguments. At the time, the firm forecast 45 such complaints in 2023, up from 89 in 2022.

The complaint alleges Tyson Foods cost the plaintiffs and class members millions of dollars of harm, and it seeks to recoup those losses for all plan members.

The plaintiffs are being represented by the law firms of Walcheske & Luzi LLC and Carney Bates & Pulliam PLLC.

Advisory M&A News – 12/4/23

Creative Planning announces acquisition of Daniels + Tansey; Perigon Wealth Management welcomes Wealth Advisors Inc.; Advisers Medelberg and Koziatek join UBS.

Creative Planning Announces Acquisition of Daniels + Tansey

Creative Planning LLC announced the acquisition of Daniels + Tansey LLP. Based in Delaware, Daniels + Tansey specializes in integrated financial advisory, tax services and investment management for individuals, families and small businesses across the wealth spectrum.

“We are delighted to extend a warm welcome to the accomplished team at Daniels + Tansey as they become part of the Creative Planning family,” Peter Mallouk, CEO of Creative Planning, said in a statement. “Their team of industry experts is dedicated to delivering comprehensive wealth solutions with a personal touch.”

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As of July 1, Creative Planning’s combined assets under management exceeded $245 billion. In addition, Citywire has recognized Daniels + Tansey as the fastest-growing registered investment adviser in Delaware.

“We’re excited about what our partnership with Creative Planning brings to our business and especially our clients,” Chris Daniels, managing director of Daniel + Tansey, said in a statement. “By combining a comprehensive national platform with our 40-year relationship with the community, we are now able to offer the Delaware Valley’s premier, full-service tailored wealth management experience.”

Perigon Wealth Management Welcomes Wealth Advisors Inc. of Nevada

Perigon Wealth Management LLC has acquired Wealth Advisors Inc., an RIA with more than $275 million assets under management. Paul Drolson, Wealth Advisors’ founder and president, will become a partner in Perigon.

“Paul and his team exemplify the kind of professionals who can thrive as a part of the Perigon Wealth family, and we look forward to ensuring they are well-positioned to deliver the highest level of service their clients demand,” Arthur Ambarik, Perigon’s CEO, said in a statement.

The transaction extends Perigon’s footprint into Nevada and grows the firm’s California presence with an office in San Diego County. Drolson founded Wealth Advisors in 2003 to serve high-net-worth individuals, families and small businesses. He joins Perigon with his team of four advisers and support staff.

“I am excited to join Art and the Perigon team as they bring the technology, solutions and capital to the table that enables us to deliver an exceptional client experience catered to the specific needs of our clients,” Drolson said in a statement.

Advisers Medelberg, Koziatek Join UBS

UBS Wealth Management USA announced that Charlie Medelberg and Stacey Koziatek, part of the Medelberg Group, have joined the firm as financial advisers.

“On behalf of UBS, we’re excited to welcome Charlie and Stacey to the firm,” Michael Mimick, an executive in the Midwest market at UBS Wealth Management USA, said in a statement. “We look forward to having them help us continue to expand our client offering in this key market.”

They will be located in the Chesterfield, Missouri, office, reporting to Gary Wideman, UBS’s market director for St Louis-Chesterfield. Together, Medelberg and Koziatek manage $275 million in client assets and have more than 60 years of experience advising high-net-worth individuals, families and business owners.

“Charlie and Stacey are talented and experienced advisors, dedicated to providing their clients with best-in-class advice and service,” said Wideman in a statement. “Leveraging our unique suite of high-net-worth capabilities at UBS, I have no doubt they will be able to successfully deliver the full power of UBS to their clients for years to come.”

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