![]() ![]() In the Wisconsin case, where the plan had between 9,000 and 20,000 participants, the alleged cost was between $235 and $271 per participant. In the Ohio case, where the plan had approximately 90,000 participants, the alleged cost was $32 per participant, of which the plan sponsor absorbed $27 (an employer subsidy that is not legally required). As is typical, the plaintiffs in both cases attempted to support their claims by comparing the recordkeeping cost per year per participant for the target plans to the costs in comparable plans. In both cases, the complaint alleged that the defendants breached the fiduciary duty of prudence by permitting their respective plans to pay excessive amounts for recordkeeping. Although the disparate results can arguably be rationalized by the underlying facts in each case, the opinions show that district courts continue to apply inconsistent principles in adjudicating these claims at the motion to dismiss stage. ![]() ![]() Credit Union Retirement Plan Association, No. 9, 2023) dismissal was denied in Lucero v. A district court in the Southern District of Ohio and one in the Western District of Wisconsin reached opposite conclusions on motions to dismiss claims for fiduciary breach based on allegations that recordkeeping fees were unreasonably high. ![]()
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