Top Employer of County in North Carolina Sued Over Accusations of Misusing Retirement Funds
Laboratory Corporation of America has more than 70,000 employees, more than 3,000 in Alamance County, and one of them says the company’s retirement plan is spending six times what it should on administration in a federal lawsuit significantly cutting into retirement funds.
LabCorp has long been Alamance County’s largest private employer, and most of those employees are eligible for the Laboratory Corporation of America Holdings Employees’ Retirement Plan. Damian McDonald, the only named plaintiff in what seeks to be a federal class-action suit open to all LabCorp employees participating in the retirement plan, is a current employee, though the suit does not specify where he works.
Like most modern retirement plans, LabCorp’s is a 401k defined contribution plan, meaning employees put their own money into it along with company matching funds, and the plan invests those funds. Fidelity Investments Institutional Operations Company is the plan’s “recordkeeper,” which can be a misleading description, according to the suit, because its services can include managing accounts, investment consultation and claims processing.
