Participants of the Xerox Corp. 401(k) Savings Plan have filed an Employee Retirement Income Security Act (ERISA) lawsuit against Xerox Corp., its plan administration committee and various individual defendants alleging imprudent recordkeeping fees.
The plaintiffs say the defendants used its in-house recordkeeper and passed Xerox’s fees on to the plan’s participants. Xerox HR Benefit Services, a wholly owned subsidiary of Xerox, was hired as the plan’s recordkeeper in 2013, according to court documents. The plaintiffs, which include current and past participants of the 401(k) plan, allege Xerox’s fees were “well above reasonable market rates” from the beginning of the arrangement.
According to the complaint, the the defendants failed to “prudently and loyally oversee the plan’s recordkeeping service provider, and instead used the plan to promote Xerox’s own business interests.”
The plaintiffs claim that under Xerox HR Benefit Services, recordkeeping expenses in the plan more than doubled from $54 per participant in 2013 to $136 by 2019, the last year for which data is available, despite recordkeeping costs in the market declining overall in that time. The defendants switched to an unaffiliated recordkeeper earlier this year. read the rest here