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ADP MEP Sued

adptotalsource

When your plan becomes big enough, you become a target.

 

A lawsuit was filed in New Jersey Federal Court by McCaffree Financial Corp., a participating employer of the ADP TotalSource Retirement Savings Plan, which has filed suit “on behalf of the Plan and a class of similarly-situated participating employer co-sponsors or other fiduciaries, against ADP, Inc., ADP TotalSource Group, Inc., as well as the administrative committee of the ADP TotalSource Retirement Savings Plan and its members. The suit also names the plan’s investment advisor (401K Advisors, Inc. n/k/a NFP Retirement) for breach of their fiduciary duties.

 

The plan has more than $4 billion in assets. The lawsuit alleges that the ADP Plan had unreasonable plan expenses and the advisor selected high cost and poor performing.

 

I already see one problem in the case As McCaffree acknowledge that they don’t have a total plan cost because a good chunk of plan assets are in collective investment trusts, where the costs are unknown.

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