A new lawsuit against a jumbo defined contribution plan takesaim at the relationship The Vanguard Group, Inc. had asrecordkeeper and trustee of participant assets, and the allegedlyhigh fees participants paid to invest in proprietaryVanguard funds.
Fiduciaries to the 401(k) plan sponsored by health care giant Anthem—which heldabout $5.1 billion in assets and served more than 59,000participants at the end of 2014—selected high-cost share classes ofVanguard mutual funds when lower cost share classes of identicalfunds were available to the plan, allege a proposed class of Anthemparticipants.
Participants lost $18 million in retirement savings betweenDecember 29, 2009 and July 22, 2013 due to unnecessarily high fees,according to the claim.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
