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Civil Plaintiff

Koch Industries Settles an ERISA Excessive Fee Suit for $4 Million

Koch Industries has agreed to pay $4 million to settle a lawsuit alleging the company, Koch Business Solutions and the Koch Benefits Administrative Committee allowed excessive recordkeeping fees to be charged to participants in Koch-affiliated defined contribution (DC) retirement plans.

In addition to the monetary relief, the terms of the proposed settlement, which still need court approval, provide that the defendants will issue a request for proposals (RFP) for recordkeeping services for the plans within 180 days of the settlement effective date.

The original complaint noted that Alight has been the recordkeeper for the plans since 2009. It said the plan assets were all held in one master trust, and the size of the trust gave Koch “significant leverage to negotiate recordkeeping expenses.”

Read the source article at planadviser.com

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