Olin faces trial for excessive record keeping fees
Olin Corp., Clayton, Mo., has been named in a federal class action lawsuit filed by former participants in Olin’s $ 931 million 401 (k) plan, claiming the plan’s record-keeping costs were excessive .
The lawsuit, filed Nov. 9 in the United States District Court in St. Louis by Malika Riley and Takeeya S. Reliford on behalf of participants in the Olin Corp. Employee Stock Purchase Plan, alleges that since 9 November 2015, Olin and other related parties failed to properly monitor and control plan record keeping costs.
The complaint also contends that the defendants failed to ensure that their investment options were the best “in terms of cost and performance”, and selected and maintained investment funds despite less expensive and available options. more efficient.
While the lawsuit claims that “reasonable rates for large plans are generally around $ 35 per participant,” the plan at one point cost on average more than $ 150 per participant in record keeping fees per year. The plaintiffs argue that the defendants’ actions “have cost the plan and its members millions of dollars.”
Voya Institutional Plan Services is the custodian of plan records, but is not named as a defendant in the lawsuit.
Representatives of Olin Corp. and de Voya could not immediately be reached for comment.