Citigroup 401(k) Plan participants suit allowed to move forward

Citigroup 401(k) Plan participants suit allowed to move forward

Suit alleges plan fiduciaries violated ERISA by offering affiliated funds that charged higher fees.

A U.S. District Court judge in New York is allowing a participant lawsuit against plan fiduciaries of the Citigroup 401(k) plan. The case is another instance of an affiliated product that charges higher fees than funds with comparable performance.  A copy of the article, titled “Court Moves Forward Citigroup 401(k) Excessive Fee Suit” appeared on PlanAdvisor website.

The case is another example that demonstrates the true role of a fiduciary to retirement plans and the requirement to put the needs of participants ahead of their own.  Plan sponsors should thoroughly document their provider selection process, their investment lineup selection, and be sure to fully disclose fees to the participants.