Costco to Cap 401(k) Administrative Fees in ERISA Class Deal

Costco Wholesale Corp. will reduce its annual 401(k) recordkeeping fees to no more than $13 per person in connection with a 250,000-person class settlement that plan participants value at $5.1 million, a motion filed in Wisconsin federal court indicates.

The deal, announced Monday in the U.S. District Court for the Eastern District of Wisconsin, requires Costco to cap its per-person 401(k) recordkeeping fees at $3.25 per quarter for as many calendar quarters as it takes for the total fee reduction to hit $3.2 million.

Costco also will pay $400,000 into a settlement fund that will make distributions to former plan ...