Swiss Re Fails to Shut Down Plan Fees, Forfeiture Handling Suit

Swiss Re America Holding Corp. couldn’t escape a lawsuit Monday alleging its handling of a $1.45 billion retirement plan violated the Employee Retirement Income Security Act.

Four former Swiss Re employees sufficiently alleged that their ex-employer’s investment process and plan selection was imprudent and that it misused their forfeiture funds, Judge Andrew L. Carter Jr. said. The US District Court for the Southern District of New York denied Swiss Re’s motion to dismiss without prejudice.

“Plaintiffs have sufficiently alleged facts that demonstrate defendants have breached their fiduciary duties by making imprudent investment decisions,” Carter said.

The ex-workers allege in a ...