A lawsuit has been filed on behalf of Caterpillar 401(k) Retirement Plan participants, suggesting that participants overpaid for services provided by Financial Engines (FE), with excess payments as kickbacks to Hewitt. For periods prior to 2014, FE provided services to plan participants who signed up. Fees for those services were paid from participant accounts, and the claim is that such fees were exorbitant since the agreement between Hewitt and FE required FE to kickback a large percentage of the fees associated with FE services even though the Hewitt companies (Aon Hewitt Financial Advisors, Hewitt Financial Services and Hewitt Associates) were not performing any services in exchange for payment. The lawsuit contends that this arrangement violates federal laws designed to protect retirees.
www.planadviser.com; January 31, 2017.