The case against Koch Industries and the Koch Benefits Administrative Committee alleging excessive recordkeeping fees in Koch-affiliated defined contributions plans has reached a proposed settlement of $4 million, which also includes a requirement that an RFP for recordkeeping services be issued within 180 days of the settlement effective date. More specifically, plaintiffs argued that both the size of the Koch defined contribution plans held in one master trust, recordkept by Alight, as well as the scope of services provided by Alight, which includes administering the Koch Pension Plans and employee benefits portal, provided a great deal of leverage in negotiating recordkeeping expenses. Koch failed to exercise its negotiating position, perpetuating excessive plan fees. Plaintiffs’ attorneys, although confident in their clients’ claims, agree that the settlement eliminates the cost of legal proceedings and risk.
www.pionline.com; July 14, 2021.