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Aegon USA Case

A participant in the Aegon Companies Profit Sharing Plan has alleged that Aegon USA and some of its subsidiaries and trustees of the Plan breached their fiduciary duties through excessive plan fees, allegedly higher than those paid by its peers, and fees that were paid mainly to Aegon itself as recordkeeper and investment manager, through Aegon affiliates Transamerica Asset Management, Transamerica Financial Life Insurance Company and Diversified Retirement Corporation, now known as Transamerica Retirement Solutions.

Excessive “layering” of plan fees is cited through the Aegon investment products, namely the collective trusts and the pooled separate accounts offered in the Plan, as these vehicles are commingled products that reinvest in Aegon mutual funds of the same asset class and strategy. Such products charge an investment management fee and portfolio administration fees in addition to the fees charged to the underlying mutual funds—fees collected by Aegon.

Furthermore, the lawsuit cites that the portfolios of the underlying mutual funds are not managed by Aegon directly, but by subadvisers, and Aegon charges yet another fee for selection of the subadviser to perform portfolio management duties.

PlanSponsor.com, February 9, 2015.