Reliance settles their role in Insperity case for $40 million

reliance trust company

Reliance Trust has settled one of the largest 401(k) excessive suit settlements in their role in the Insperity 401(k) plan. The price tag of the settlement is $39.8 million.


The case came from a case involving Reliance Trust and its role regarding the Insperity 401(k) Plan.


The suit alleged that Reliance, Insperity, Inc., Insperity Holdings, Inc., and Insperity Retirement Services, L.P., “breached their fiduciary duties and conducted prohibited transactions under ERISA by:

  1. selecting untested proprietary funds ( the ‘Horizon Funds’) as investment options for the Plan and retaining those funds despite their poor performance, which benefited Defendants at the expense of participants”;
  2. paying Insperity Retirement Services, the Plan’s recordkeeper, excessive administrative expenses;
  3. providing to the Plan investment options that contained unreasonable management fees when cheaper versions of the same investments were available to the Plan, as were other high-quality, low-­cost institutional alternatives;
  4. retaining a minimally returning money market fund;
  5. failing to properly monitor the Plan’s fiduciaries;
  6. engaging in prohibited transactions with a party in interest by putting proprietary investments in the Plan, causing the Plan to pay unreasonable compensation to Insperity Retirement Services, and providing the Plan unduly expensive investment options; and
  7. engaging in prohibited fiduciary self-dealing through the use of proprietary investment options in the Plan and the use of Insperity Retirement Services as the Plan’s recordkeeper.


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