Benefits & Executive Compensation News

Putnam 401(k) Fee Lawsuit Trimmed Ahead of Trial

March 31, 2017, 2:10 PM

Putnam Investments LLC won a battle in a lawsuit challenging the in-house mutual funds in its 401(k) plan when a judge ruled for the company on two of the lawsuit’s five claims (Brotherston v. Putnam Invs., LLC, 2017 BL 103953, D. Mass., No. 1:15-cv-13825-WGY, 3/30/17).

The lawsuit accuses Putnam of filling its 401(k) plan with expensive mutual funds that earn high fees for Putnam at the expense of workers’ retirement savings. A federal judge ruled on March 30 that the allegations against Putnam didn’t constitute a violation of the Employee Retirement Income Security Act’s prohibited transaction rules. In...

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