WEC Energy Accused of Mismanaging $1.8 Billion 401(k) Plan (1)

Midwestern energy provider WEC Energy Group Inc. is accused of mismanaging its employees’ retirement plan by hiring high-cost service providers and offering expensive and underperforming target date funds, according to a proposed class action filed Tuesday in Wisconsin federal court.

WEC failed to take advantage of the plan’s large asset base—allegedly more than $1.8 billion—to obtain a better deal on recordkeeping and managed account services, plan participant Jonathan Munt said in the complaint. The plan’s annual recordkeeping fees averaged about $147 per person, when a reasonable annual fee would be closer to $41 per person, Munt claims.

Munt’s lawsuit, filed ...