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Transamerica 401(k) Plan Settlement

In this case, participants in the Transamerica 401(k) Plan alleged violation of ERISA fiduciary obligations by offering high cost proprietary funds in the Plan. Among the terms of the preliminary settlement, Transamerica agreed to cap the fees on its separate accounts offered in the Plan, add a low cost S&P 500 Index fund, a non-proprietary low cost bond fund, employ an unaffiliated consultant to review investment options annually and revise and clarify the Summary Plan Description. The settlement also requires Transamerica to continue providing recordkeeping services at no cost, rebate mutual fund revenue sharing/sub-adviser fees, and offer a host of non-affiliated mutual funds via a brokerage window.

www.asppa.org; July 1, 2016.