Ameritas Hit With Class Suit Over Retirement Plan Annuities

Three former Ameritas Holding Co. employees filed a proposed class action Friday, saying their $779 million 401(k) plan is plagued by mismanagement and conflicts of interest.

The retirement plan of Ameritas, a Nebraska-based provider of insurance and financial products, featured retail annuity products that paid excessive fees to the company and its affiliates, the employees said. This “complicated and non-transparent” structure was much more expensive than a traditional, non-annuity 401(k) plan, and it allowed the company to profit at the expense of its workers’ retirement savings, according to the complaint.

The lawsuit, filed in the US District Court for ...