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Chevron 401(k) Plan Excessive Fee Case

This case has been dismissed by a U.S. District Court. Plaintiffs alleged that Chevron and members of the Chevron 401(k) Plan investment committee breached fiduciary duties by offering expensive and underperforming funds, incurring excessive administrative fees from the Plan’s recordkeeper, Vanguard, and offering a money market fund in lieu of a stable value fund. The Court concluded that plaintiffs failed to support the case for breach of fiduciary duties. The judge declared that the Plan’s range of investment fees represented by the funds offered (and breadth of funds offered) were “within the spectrum that other courts have held to be reasonable as a matter of law.” Regarding the administrative fees for recordkeeping services, the judge ruled that the plaintiffs did not show that they were excessive for the services provided.

www.pionline.com; August 30, 2016.