Benefits & Executive Compensation News

Nationwide Accused of Charging Excessive 401(k) Fees

June 27, 2017, 7:56 PM

Nationwide Life Insurance Co. charges 401(k) investors excessive fees for record-keeping services, a new class action complaint alleges (Schmitt v. Nationwide Life Ins. Co., S.D. Ohio, No. 2:17-cv-00558, complaint filed 6/27/17).

The lawsuit, filed June 27 by a participant in a small 401(k) plan sponsored by Andrus Wagstaff PC, says Nationwide’s practice of charging a flat, 1 percent fee for administrative services allowed the company to collect fees that were nearly 10 times the median fee throughout the industry.

According to the complaint, Nationwide at one point received $625 per participant, per year, for servicing a 401(k) plan...

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