Baker Hughes Sued Over 401(k) Provider’s ‘Unchecked’ Pay (1)

Baker Hughes Holdings LLC mismanages its $3.8 billion 401(k) plan by allowing its third-party recordkeeper to earn millions of dollars in unchecked compensation from assets held in a temporary account, a plan participant alleged in a new lawsuit.

Plaintiff Jesus Espinoza accuses the oil field services company of failing to monitor or negotiate the investment returns its 401(k) recordkeeper earns from plan assets while they’re temporarily held in a clearing account in connection with deposits and withdrawals. Espinoza contends this is a violation of the Employee Retirement Income Security Act’s fiduciary duties, which he says require plan fiduciaries to monitor, ...