US Cellular Parent Sued Over Fees in $1.3 Billion 401(k) Plan

Telephone & Data Systems Inc. was hit with a proposed class action saying its $1.3 billion retirement plan is plagued by excessive and unreasonable administrative fees.

The lawsuit says Telephone & Data, a Chicago-based telecommunications service company that owns wireless carrier US Cellular Corp., failed to use the plan’s “mammoth” size as leverage to negotiate a better deal on recordkeeping and administrative services. Plan participants paid about $77 per person, per year, for these services, which are “fungible” and “commoditized” and could have been obtained for less money, according to the complaint.

The plaintiffs, who are current and former ...