Aon Beats Appeal Over Lowe’s 401(k) Plan Lineup, Affiliated Fund

Aon Hewitt Investment Consulting Inc. defeated a 250,000-person class action challenging its management of the Lowe’s 401(k) plan, when the Fourth Circuit on Monday upheld the company’s win over claims involving a suggested plan redesign and an underperforming proprietary fund.

“While Aon was recommending that Lowe’s restructure its retirement plan, it was also pitching Aon’s delegated-fiduciary services,” but selling services isn’t investment advice through which it could violate its duty of loyalty, the US Court of Appeals for the Fourth Circuit said. “And the actual investment advice—streamlining the plan menu—was not informed by Aon’s desire to sell its services.” ...