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Ricoh Retirement Plan Unreasonable Recordkeeping Fees Class Action

Employer retirement plans are governed by the Employee Retirement Income Security Act (ERISA), which requires that fiduciaries for the plan fulfill duties of prudence and loyalty to the plan. This class action brings suit against Ricoh USA, Inc., its Board of Directors, its Ricoh Retirement Plans Committee, and the members of the latter two groups, who are supposedly the fiduciaries for the Ricoh USA, Inc. Retirement Savings Plan, alleging that they were the plan fiduciaries but that they allowed the plan to pay excessive costs and recordkeeping fees.

The class for this action is all persons who were participants in or beneficiaries of the Ricoh retirement plan at any time between February 22, 2016 and the date of judgment in this case.

The complaint quotes the Department of Labor as saying that employers must both “establish a prudent process for selecting investment options and service providers” and “monitor investment options and service providers once selected to see that they continue to be appropriate choises.”

The complaint alleges that the defendants in this case breached their fiduciary duties in two ways: They “(1) fail[ed] to objectively and adequately review the Plan’s investment portfolio with due care to ensure that each investment option was prudent, in terms of cost; and (2) fail[ed] to control the Plan’s recordkeeping administration costs.”

At all times covered by this case, the complaint claims that the plan had at least $1.9 billion in assets, and sometimes more than $2 billion. This large amount makes it a “jumbo” plan, giving it substantial bargaining power to negotiate fees and expenses charged to it.

However, the complaint alleges that the administrative and recordkeeping costs were excessive, compared to other, similarly-sized plans. Instead of negotiating a per-person fee, the complaint alleges, “[t]he Defendants chose to add 9 basis points to each fund in the Plan to offset the Plan’s administration and recordkeeping costs.” This, the complaint claims, came out of the participants’ investment earnings.

For the years, between 2016 and 2020, the complaint works this out into a per-participant, per-year charge. A chart in the complaint shows that this charge ranged from a low of $61.75 to a high of $103.54.

Another chart shows costs of similarly-sized plans in 2019, also on a per-participant basis. This shows administrative and recordkeeping costs ranging from a low of $23 to a high of $35, far lower than the costs for the Ricoh plan. The complaint therefore asserts that the Ricoh plan’s fees were unreasonable.

The claims for relief include breach of the fiduciary duty of prudence and failure to adequately monitor other fiduciaries.

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Ricoh Retirement Plan Unreasonable Recordkeeping Fees Complaint

February 22, 2022

Employer retirement plans are governed by the Employee Retirement Income Security Act (ERISA), which requires that fiduciaries for the plan fulfill duties of prudence and loyalty to the plan. This class action brings suit against Ricoh USA, Inc., its Board of Directors, its Ricoh Retirement Plans Committee, and the members of the latter two groups, who are supposedly the fiduciaries for the Ricoh USA, Inc. Retirement Savings Plan, alleging that they were the plan fiduciaries but that they allowed the plan to pay excessive costs and recordkeeping fees.

Ricoh Retirement Plan Unreasonable Recordkeeping Fees Complaint

Case Event History

Ricoh Retirement Plan Unreasonable Recordkeeping Fees Complaint

February 22, 2022

Employer retirement plans are governed by the Employee Retirement Income Security Act (ERISA), which requires that fiduciaries for the plan fulfill duties of prudence and loyalty to the plan. This class action brings suit against Ricoh USA, Inc., its Board of Directors, its Ricoh Retirement Plans Committee, and the members of the latter two groups, who are supposedly the fiduciaries for the Ricoh USA, Inc. Retirement Savings Plan, alleging that they were the plan fiduciaries but that they allowed the plan to pay excessive costs and recordkeeping fees.

Ricoh Retirement Plan Unreasonable Recordkeeping Fees Complaint
Tags: Breach of Fiduciary Duty, ERISA Violations, Excessive Fees, Retirement Plans