Nordstrom Sued Over 401(k) Plan Fees, Use of Forfeited Assets

Nordstrom Inc. mismanages its $3.4 billion 401(k) plan by overpaying for administrative services and using money forfeited by departing employees for its own benefit, five current and former employees alleged in a proposed class lawsuit.

The Nordstrom plan’s annual fees for recordkeeping and managed account services were at least $63 per person over the past few years, when a reasonable fee would have been closer to $22 per person, the workers said. The company’s failure to appropriately monitor these fees or negotiate a better deal cost the plan tens of millions of dollars, according to the complaint, which seeks to ...