A participant in the Rollins 401(k) Savings Plan has alleged many fiduciary breaches concerning the Rollins Plan as well as that of Western Industries, a wholly owned subsidiary of Rollins – a plan with common fiduciaries, investments and service providers. Claims include failure to prudently select lower cost institutional share classes of investment options for the Plans. Although defendants did act to replace retail share classes with institutional classes in 2019, separated employees who withdrew monies were allegedly harmed and “repair” is deemed necessary for those participants who were affected by past years’ ‘”prohibited transactions and trust damages.”’ Also of issue are the poor diversification opportunities made available within the Plans’ investment menus consisting of highly correlated equity funds, with no intent of adding funds investing in less-correlated asset classes. Unmonitored excessive revenue sharing payments from the Plans’ investment options, with no caps or limits in place, are also of concern. The lawsuit further alleges that the defendants improperly compensated a specific broker/dealer representative, terminated in 2014, for work either not performed or unrelated to the administration of the Plans, causing unreported prohibitive transactions over the course of many plan years.
www.planadviser.com; December 26, 2019.