Kellogg Is Latest Employer Accused of High Retirement Plan Fees

A former accountant for Kellogg Co. sued the company in federal court, claiming the Michigan-based food manufacturer mismanaged its $1.9 billion 401(k) plan by paying excessive administrative and managed account fees and failing to remove the plan’s high-cost recordkeepers.

The Kellogg plan paid annual recordkeeping fees of about $137 per person, which is out of line with the fees paid by similarly sized plans for the same services, plan participant Bradley Fleming said in the complaint. Kellogg’s failure to negotiate a better deal or find a new recordkeeper cost plan participants nearly $10 million in unnecessary fees between 2016 and ...