Great-West, Empower Targeted in Latest 401(k) Fee Suit

Jan. 19, 2016, 5:00 AM UTC

Great-West Life & Annuity Insurance Co. is the latest retirement plan service provider to be hit with a class action complaint alleging it charges and collects excessive 401(k) fees (Krikorian v. Great-West Life & Annuity Ins. Co., D. Colo., 1:16-cv-00094, complaint filed 1/14/16).

According to the complaint, filed Jan. 14 in the U.S. District Court for the District of Colorado, Great-West’s retirement plan business—branded Empower Retirement—receives kickbacks from the mutual funds it offers to 401(k) plans as part of an impermissible “pay-to-play scheme” that drains money from plan participants’ retirement savings.

Great-West also “deceptively characterized” these kickbacks ...

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