Seven 401(k) plan participants have filed a lawsuit against Exelon Corp., Chicago, alleging the utility company breached its ERISA fiduciary duties in the management of its 401(k) plan.
The lawsuit, filed Monday in U.S. District Court in Chicago, alleges Exelon, its board of directors, investment committee and certain officers breached their duties under the Employee Retirement Income Act of 1974 by offering expensive and underperforming investment options in the Exelon Corp. Employee Savings Plan and allowing high fees for consulting and record keeping services, according to the court filing.
Among the allegations is that defendants allowed excessive fees to be charged by underlying managers in the plan's customized target-date fund lineup and domestic equity, international equity and fixed-income core investment options, when other stand-alone target date funds and individual options were available that offered lower fees and better performance.
The lawsuit also alleged excessive record keeping and administrative fees. The court filing did not identify the firm providing the services.
As of Dec. 31, the record keeper was Northwest Plan Services and the Exelon Corp. Employee Savings Plan had $10.7 billion in assets, according to the plan's most recent Form 5500 filing.
Michael M. Mulder, an attorney for plaintiffs, and Elizabeth Keating, Exelon spokeswoman, could not be immediately reached for comment.