Benefits & Executive Compensation News

Nationwide 401(k) Fee Class is 250,000 Strong, Participant Says

July 5, 2019, 3:22 PM

A 401(k) plan participant who sued Nationwide Life Insurance Co. over record-keeping fees asked to represent a class of more than 250,000 participants in smaller retirement plans that contracted with the company.

Theresa Brown sought class certification for a plaintiff class of 7,000 retirement plans with less than $10 million in assets and their participants. She also asked to certify a defendant class of retirement plan sponsors, proposing her former employer—the law firm Andrus Wagstaff PC—as the defendant class representative.

Brown’s lawsuit claims Nationwide’s practice of charging a flat, 1% fee for administrative services allowed the company to collect fees...

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