Physicians’ Group Retirement Plan Draws Target-Date Fund Suit

Medical Faculty Associates Inc. was hit with a proposed class action accusing the Washington, D.C., area physicians’ group of mismanaging its 401(k) plan by offering a suite of target-date funds that “glaringly underperformed.”

Participants in Medical Faculty’s plan lost out on millions of dollars in retirement savings because the plan’s target-date funds from non-party American Century Investments carried unnecessary fees while lagging behind nearly every potential benchmark, plaintiffs Carolyn Rawles and Allison Swift said in a complaint filed Tuesday in the US District Court for the District of Columbia. Medical Faculty didn’t appropriately monitor these funds or use a sound ...