A participant in the Publicis Benefits Connection 401(k) Plan claims that the Plan’s recordkeeper, Fidelity, requires that various funds in the Fidelity FundsNetwork make undisclosed “infrastructure” payments to Fidelity if the disclosed 12b-1, administrative, service or sub-transfer fees fall below certain thresholds, in violation of ERISA. Such payments are allegedly necessary to secure representation in the FundsNetwork for Fidelity’s retirement plan clients’ selection, in violation of ERISA. The lawsuit claims that Fidelity does not disclose the amounts of such “infrastructure” payments and “forbids” the mutual funds in its FundsNetwork, via contractual agreement, from doing so. This lawsuit is one of several recently filed on the same basis.
www.planadviser.com; April 8, 2019.