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Fujitsu 401(k) Plan Lawsuit

Plan participants in the Fujitsu Group Defined Contribution and 401(k) Plan have filed a lawsuit against the Plan’s fiduciaries claiming that they breached their fiduciary duties of loyalty and prudence under ERISA by offering an excessively expensive plan and poorly designed target date funds. The lawsuit claims that the $1.3 billion plan’s costs equaled 0.88% of plan assets ($11.4 million as of 2013) as opposed to the average cost of plans with $1 billion+ in assets, reported at 0.33% of plan assets annually. The lawsuit cites the excess fees as a result of failure to offer the least expensive available share classes, excessive recordkeeping and administration fees verses what a prudent fiduciary would pay (8 to 10 times more than a similar plan would have paid for such services in 2014), and failure to monitor and manage the Plan’s investment options in a cost-effective manner, without consideration for fees, investment performance, or availability of less expensive comparable options.

www.planadviser.com; July 5, 2016.