FM Global Sued Over Retirement Plan’s Fees, Target Date Funds

FM Global was sued Tuesday by a former employee who says the mutual insurance company mismanages its $1.8 billion 401(k) plan by overpaying for administrative services and offering pricey funds from the plan’s recordkeeper.

FM Global allowed its retirement plan to pay annual recordkeeping fees of about $120 per person, when five plans with similar asset bases and numbers of participants paid less than $50 per person for these services, according to the lawsuit. This failure to use the plan’s large size as leverage to negotiate a better deal on administrative services is a violation of the Employee Retirement Income ...