A current and former participant in an NCR Corp. 401(k) plan have sued the company alleging "grossly excessive fees" were charged by the plan in violation of ERISA.
"Simply put, in this case, the fees Fidelity extracted from the plan are excessive in relation to the specific services Fidelity provided to the plan," said the lawsuit filed Dec. 9 in a U.S. District Court in Atlanta. Fidelity Investments, the plan's record keeper, isn't a defendant.
"NCR failed to prudently manage and control the plan's record-keeping costs and other compensation paid to Fidelity," said the complaint, which seeks class-action status, in Mirabal et al. vs. NCR Corp.
The lawsuit accused NCR of failing to conduct a periodic RFP process for record-keeping services — "annually, or at least every three years" — even though Fidelity has been the record keeper since at least 2009.
"NCR could have and should have used the plan's increasing size and long-standing relationship with Fidelity as bargaining power to reduce the plan's costs," the lawsuit said. "It failed to do so."
A company representative did not respond to a request for comment.
The NCR Savings Plan, Atlanta, had $2.2 billion in assets as of Dec. 31, 2021, according to the latest Form 5500.