Koch Industries, the parent of Georgia-Pacific, Infor and other companies, is being sued for allowing the record keeper of its 401(k) and other defined-contribution plans to charge fees that plaintiffs contend are excessive, according to a complaint filed in federal court in Atlanta.
As reported by Pensions & Investments, the class action charges that Koch Industries breached its fiduciary responsibilities as administrator of the $8.1 billion Koch Companies Defined Contribution Master Trust, which serves about 60,000 participants, by failing “to prudently and loyally monitor and control” the expenses incurred by the plans’ record keeper, Alight Solutions. Alight was not named in the lawsuit.
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The complaint further said that Alight charged “up to six times more than what similarly sized plans would have paid for such services” and that these actions cost the plans and their participants “millions of dollars in excessive fees.”
The plaintiffs, David Kinder and Tracy Scott, are residents of Arkadelphia, Arkansas. One is a participant and the other a former participant in the Georgia-Pacific Hourly Plan.
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