Wesco Distribution Sued Over 401(k) Plan’s Administrative Fees

Wesco Distribution Inc. mismanaged its $750 million retirement plan by allowing plan service provider Wells Fargo to charge “exorbitant and unreasonable” per-person fees, a proposed class action filed in Pennsylvania federal court alleges.

Wesco’s plan paid between $159 and $194 per participant in annual administrative fees to Wells Fargo, which isn’t named as a defendant, plan participant Robert Mator said in a complaint filed March 26 in the U.S. District Court for the Western District of Pennsylvania. These fees are significantly higher than what a prudently managed plan would have paid, and they’re significantly higher than fees assessed to participants ...