Court dismisses excessive fee charge – When parties are considered fiduciaries

Description

Abstract: A U.S. Court of Appeals has denied a 401(k) plan sponsor’s effort to recover funds from its administrator based on an accusation that it had charged participants “excessive” fees. This article explains why the court rejected the plaintiff’s arguments and reminds plan sponsors to carefully scrutinize fee structures during contract negotiations. Hecker v. Deere & Co., 556 F.3d 575, 583 (7th Cir. 2009) Renfro v. Unisys Corp., 671 F.3d 314, 324 (3d Cir. 2011) McCaffree Financial Corp. v. Principal Life Insurance Company (8th Cir., No. 15-1007)