Voya Accused of Layering 401(k)s With Unnecessary Fees

A new lawsuit accuses Voya Financial Inc. of creating a system for retirement investors to receive investment advice that allowed the company to skim undeserved fees from investors’ accounts in violation of federal law (Patrico v. Voya Fin., Inc., S.D.N.Y., No. 1:16-cv-07070, complaint filed 9/9/16).

According to the lawsuit, filed Sept. 9 by a participant in Nestle USA Inc.'s 401(k) plan, Voya contracted with federally registered investment adviser Financial Engines Advisors LLC to provide advice to participants in Voya-administered retirement plans. Voya then charged participants a fee of as much as 50 basis points for ...