Milliman beat back claims that it breached a duty by retaining in-house target risk funds in its 401(k) plan.
At issue were some Milliman-owned, proprietary allocation funds, a suite of target risk funds (the Unified Trust Wealth Preservation Strategy Target Growth Fund, Unified Trust Wealth Preservation Strategy Target Moderate Fund, and Unified Trust Wealth Preservation Strategy Target Conservative Fund. The lawsuit claimed that the funds were launched in November 2012, with no track record, and that by the end of 2013, the Millman Plan was the sole investor in the Moderate and Conservative Funds and represented about 97% of the assets of the Aggressive Fund.
The Judge concludes that Milliman employed a prudent process in deciding to keep the proprietary Funds in the Plan. The Judge said the plaintiff failed to proffer evidence that there was a breach of the fiduciary process and that using the proprietary funds was a breach of the duty of loyalty.
