Nextep Ends Multiple Employer 401(k) Suit With $1.1 Million Deal

Nextep Inc. will pay $1.1 million to settle a proposed class action claiming the benefits and human resources provider’s $283 million retirement plan offers expensive investment options and charges high administrative fees, according to a filing in Oklahoma federal court.

The deal is expected to benefit at least 5,386 people covered by a multiple employer retirement plan offered by Nextep. The parties reached an agreement to resolve the 2021 lawsuit after “nearly a year of negotiations,” according to the filing.

The lawsuit accuses Nextep, a professional employer organization, of mishandling the retirement plan it manages on behalf of its participating ...