Former and current participants in the Xerox 401(k) Savings Plan are alleging excessive administrative fees charged by wholly owned subsidiary Xerox HR Benefit Services, the Plan’s former in-house recordkeeper. Xerox HR Benefit Services served as the Plan’s recordkeeper until Xerox’s recordkeeping business was spun off to Conduent HR Services, the Xerox Plan recordkeeper thereafter. Plaintiffs claim that Xerox HR Benefit Services’ recordkeeping fees doubled when recordkeeping fees in the industry were decreasing. Retention of Conduent as recordkeeper allegedly benefitted Xerox financially and led to recordkeeping expenses four times greater than the Plan would have paid in the “open market.”
www.plansponsor.com; August 17, 2021.