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Anthem 401(k) Plan Lawsuit

Participants in the Anthem, Inc. 401(k) Plan have filed a lawsuit against plan fiduciaries alleging a breach of fiduciary duties due to excessive investment management and administrative fees. The Anthem 401(k) Plan, a $5 billion plan, offers primarily Vanguard investment options and employs Vanguard as plan record keeper. Plaintiffs allege Anthem fiduciaries selected higher priced share classes of Vanguard mutual funds rather than lower cost share classes of the same funds, which would be available to the Plan given its size. Plaintiffs also claim that administrative fees (inclusive of hard dollar and revenue sharing) were also excessive, stating that the limit of reasonable fees for the plan would have been $30 per participant for record keeping, when the plan pays $42 per participant. (The administrative fees did in fact decrease during the period of 2010-13, from per participant fees in the $80-$94 range to the $42 figure, which still allegedly represents an excess). Additionally, plaintiffs allege that a lower returning money market fund was offered instead of a higher returning stable value fund.; January 5, 2016.