Participants are becoming savvy to the ERISA requirements of fiduciary duty and taking their employers to court. There is a recent trend for current and former retirement plan participants to file claims against their employers for their retirement savings plans’ “high fees” and “unwise investment offerings.” International Paper recently paid over $30 million to settle a suit from its workers over retirement plan fees.
Not even investment companies are immune from the fiduciary requirements of their employees’ retirement plan. Recently, several current and former employees of Fidelity, a major provider of retirement plans in the U.S., filed suit against Fidelity for inappropriately high fees on the mutual funds it offers in its own retirement plan.
Have you recently reviewed your plan’s fees and investment choices?