Two excessive fee lawsuits against Safeway retirement plan fiduciaries and AonHewitt Investment Consulting, Inc. have reached settlement. Plaintiffs claimed that the defendants breached their fiduciary duties of prudence through the selection of funds with excessive fees verses comparable and available funds. Further claims cited excessive revenue sharing compensation to the plan’s recordkeepers, causing prohibited transactions under ERISA for which Safeway and Great-West (as a party in interest) are liable. The settlement amount to be paid by Safeway is $8 million and $500,000 to be paid by AonHewitt. According to the settlement agreement, neither of the defendants admit any wrongdoing.
www.planadviser.com; September 18, 2019.