The suit, which also names the Nordstrom 401(k) Plan Retirement Committee as being in breach of its fiduciary duty, says that while most large retirement plans have been whittling away at plan and administrative fees, Nordstrom’s “administrative fees increased by 30% from 2011 to 2016,” according to the complaint.
Nordstrom “failed to adequately and prudently manage the plan,” the complaint alleges. “It allowed unreasonable fees to be incurred by participants; it did not act prudently to lower costs; it failed to use lower cost investment vehicles; and it made inadequate disclosures on fees.”
Its a shame that, in this day and age, any employer would be in this position, as our clients understand- it is easy to protect on this issue. The question that will arise is can Nordstroms committee show documentation that the fees were “reasonable and necessary” for running the plan the emploiyer desired. you don’t have to have the lowest fees, nut you do have to be conscious of them and document the decisions you make.