Tuesday, September 19, 2006

401(k) Fee Lawsuits -II

Groom Law group has published a follow-up on 401(k) Fee lawsuits.Their analysis concludes;
"These cases represent the next development in the evolution of the law regarding fees and relationships between plans and their service providers. The potential impact of the cases on the structure and operation of plans is significant. Each of the complaints alleges that plan recordkeepers, consultants and TPAs are fiduciaries and imply that revenue sharing payments are plan assets. The retirement service industry as a whole would be greatly affected if a court were to agree."

401(k)helpcenter has reviewed and summarized one of these complaints filed against Northrop Grumman Corporation, The Northrop Grumman Corporation Savings Plan Administrative Committee and Investment Committee, numerous corporate offers and their Board of Directors. They reval that similar suits have been filed against at least five other major Fortune 1000 companies with over a dozen more soon to follow.



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