A participant in the J.P. Morgan Chase 401(k) Plan has filed a lawsuit claiming that plan fiduciaries breached their fiduciary duties by failing to employ a “systematic review” of the investments offered from performance and fee perspectives. This caused plan participants to incur excessively high fees for both proprietary and non-proprietary funds offered within the Plan. The lawsuit claims that the $15 billion to almost $21 billion Plan (during the class period) should have provided fiduciaries some leverage to negotiate fees lower. Plaintiffs also want to know why the Plan continued to offer proprietary funds even though nearly identical lower cost, better performing funds were available. The plaintiff also accuses fiduciaries of failing to offer CITs, commingled funds, or separate accounts that could offer lower fees.
www.planadviser.com; January 26, 2017.