Investment consultant to the Lowe’s $5.2 billion/262,000 participant plan, Aon Hewitt, and Lowe’s fiduciaries, have been accused of breaching fiduciary duties under ERISA, by deciding to offer the “untested” poorly performing Hewitt Growth Fund in the Plan, a $350 million fund with no large retirement plan investors. More than $1 billion in 401(k) plan assets was transferred from 8 funds into the Hewitt Growth Fund, causing more than $100 million in investment losses according to plaintiffs. A conflict of interest existed for Hewitt in recommending its proprietary fund, and by so doing, serving its own financial interests verses those of the plan participants.
www.bna.com; April 30. 2018.
www.planadviser.com; May 4, 2018.