Nemours Foundation $1 Billion Retirement Plan Draws Fee Suit (1)

Three former Nemours Foundation employees on Monday filed a proposed class action claiming the pediatric health system mismanages its $1 billion retirement plan by forcing plan participants to pay millions of dollars in excessive administrative fees.

The Nemours plan significantly overpays Transamerica Retirement Solutions for recordkeeping services through direct fees and revenue sharing payments, the employees alleged. And it allows Transamerica—which isn’t named as a defendant—to earn money off plan assets while they’re temporarily held in a clearing account in connection with withdrawals and deposits, the employees said.

The lawsuit, filed in the US District Court for the Middle ...