A settlement agreement has been filed in the suit against Novant Health concerning excessive fees and other ERISA fiduciary breaches. The settlement requests $32 million in monetary damages as well as Novant’s agreement to adopt a new investment policy statement and conduct a competitive bidding process for investment consulting, participant education services, and record keeping for the Novant retirement plans. As originally reported in the 1st quarter 2014 update, the plans’ record keeper, Great West Life & Annuity Insurance Company, received excessive compensation and excessive amounts of revenue sharing from the investment companies providing investment options to the plans. Additionally, D.L. Davis & Company was found to receive excessive commissions payments, as well as “kick-backs” from the investment managers of the options in the plans.
planadviser.com; November 11, 2015.