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Safeway, Aon Hewitt Excessive Fee Lawsuit Settlement

A final settlement has been reached in this case, reported late last year, with both defendants, Safeway and Aon Hewitt, agreeing to pay a combined $8.5 million. Plaintiffs claimed that the companies mismanaged their retirement savings by offering and /or advising excessively expensive target date investment options in the $1.9 billion Safeway 401(k) Plan. The complaint also claimed excessively high administrative fees. Safeway will pay $8 million of the settlement and Aon Hewitt will pay $500,000 to compensate approximately 35,0000 class members, to be allocated based on the size of their respective accounts. Neither defendant admits to any wrongdoing.

www.401kspecialistmag.com; September 18, 2020.