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Exelon Sued Over Retirement Plan’s Custom Target Date Funds

Dec. 7, 2021, 8:57 PM

Utility provider Exelon Corp. was sued in federal court in Chicago by seven employees of subsidiary companies who say their retirement plan offered expensive and underperforming target date funds and charged unreasonably high administrative and advisory fees.

The proposed class action takes aim at the Exelon plan’s custom target date funds, which plan participants say were run by investment managers selected by the company. These funds, which were the plan’s default investment option, significantly underperformed other target date funds available in the marketplace, despite charging much higher fees, plan participants said in a complaint filed Monday in the U.S. District ...