CVS Health Sued Over Administrative Fees in Employee 401(k) Plan

A former CVS Health Corp. pharmacist filed a proposed class action accusing the company of failing to rein in the administrative fees associated with its $27 billion retirement plan.

Workers covered by the pharmacy chain’s 401(k) plan paid annual administrative fees as high as $34 per person, when participants in far smaller plans paid less for the same services, the pharmacist alleged in an Oct. 24 complaint. CVS should have used the plan’s “massive size” as leverage to negotiate a better deal, and it should have sought competitive bids for 401(k) recordkeeping services, according to the lawsuit.

• “The market ...