Former employees of TTEC Services Corp. sued the company and its 401(k) plan fiduciaries, alleging several violations of ERISA in their retirement plan management.
Among the allegations, the three former employees accused the defendants of failing to "prudently monitor, regularly benchmark and prudently negotiate" the plan's record-keeping fees, according to the complaint in Carimbocas et al. vs. TTEC Services Corp. et al.
The plaintiffs are seeking class-action status.
They also contended that plan executives "failed to prudently consider alternatives to mutual funds" in the plan lineup, such as collective investment trusts, said the complaint filed Thursday in a U.S. District Court in Denver.
They also alleged that the plan's record keeper, T. Rowe Price Group, included proprietary investments in the plan lineup that were expensive, poor performers. T. Rowe Price isn't a defendant.
"TTEC believes the claims in the lawsuit are without merit," spokesman Tim Blair wrote in an email.
"The fiduciaries who manage the plan take their responsibilities seriously and regularly review and benchmark the plan's investments and fees/expenses, relying on experienced advisers and subject matter experts," Mr. Blair wrote. "TTEC intends to defend the claims in this lawsuit vigorously."
The TTEC 401(k) Profit Sharing Plan, Englewood, Colo., had $199 million in assets as of Dec. 31, 2020, according to the latest Form 5500.
