Swiss Re Hit with Lawsuit Over Fees in $1.4 Billion 401(k) Plan

Swiss Re America Holding Corp. is accused of mismanaging its workers’ $1.4 billion 401(k) plan by filling it with expensive and poorly performing funds and failing to rein in administrative fees, according to a federal proposed class action filed in Manhattan.

The lawsuit accuses the company, a US affiliate of insurer Swiss Re AG, of failing to use the plan’s large asset base as leverage to negotiate better deals from the plan’s service providers. The plan’s annual recordkeeping fees were as high as $282 per person, when a reasonable annual fee would have been no more than $63 per ...