Berkshire’s Marmon Holdings Sued Over 401(k) Plan’s Custom Funds

Berkshire Hathaway’s Marmon Holdings Inc. was sued in Chicago federal court by seven former employees who say their $1.1 billion retirement plan charges excessive administrative fees and offers a poorly performing suite of custom target date funds.

The plaintiffs, led by Jennifer Lard, claim the Marmon plan’s annual recordkeeping fees ranged between $66 and $137 per person, when a reasonable annual fee for a plan of its size would be closer to $23 per person. Marmon’s failure to negotiate a better deal or find a new recordkeeper suggests the company didn’t fulfill its fiduciary duties under the Employee Retirement Income ...