McKinsey & Co. Latest Employer Sued Over 401(k) Fees

Global management consulting firm McKinsey & Co. was hit with a proposed class action claiming the company’s retirement plans are full of expensive, poorly performing funds that earn fees for a McKinsey subsidiary.

McKinsey’s retirement plans are two of the most expensive—"if not the most expensive"—large defined contribution plans in the country, the Feb. 15 lawsuit claims. The plans, which together hold more than $6 billion in assets, carry annual fees more than 13 times higher than the industry median for large plans, the lawsuit claims. These high fees benefit McKinsey’s in-house investment manager, MIO Partners Inc., which earns between ...