Request a Proposal

Fidelity Retirement Savings Plan Settlement

A settlement of $28.5 million has been proposed in this self-dealing lawsuit in which plaintiffs, participants in the Fidelity Retirement Savings Plan, claimed that Fidelity imprudently managed the $15 billion, 58,000 participant plan by allowing excessive recordkeeping fees and promoting Fidelity’s mutual fund business to the detriment of plan participants. The settlement also outlines the requirement that one of more plan fiduciaries monitor recordkeeping fees as well as the investment options within the primary investment menu (excl. self-directed brokerage). According to Fidelity, in order to avoid further lawsuit expense and the potential for approximately 80% of the settlement payment to go into the Plan, a proposal of settlement is a logical step.

www.napa-net.org; July 6, 2020.