Nordstrom store in Baltimore, MD
Nordstrom has cost its 104,811 workers millions in savings because the retailer mismanages its $3.4 billion 401(k) plan by overpaying for administrative services and using money forfeited by former employees for its own benefit, allege employees in a class action lawsuit filed this week. The employees have filed suit under the Employee Retirement Income Security Act (ERISA) for breach of ERISA's fiduciary duties.
The Nordstrom plan's annual fees for recordkeeping and managed account services were at least $63 per person over the past few years, when a reasonable fee would have been closer to $22 per person, the employees said. The company's failure to monitor these fees or negotiate a better deal cost the plan tens of millions of dollars, according to the complaint.
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