Jerry Schlichter is a
401(k) hunter. He's a litigator who sues retirement plan sponsors for charging
excessive fees to participants - and he goes after big game.
has brought lawsuits against 14 large corporations since 2006 aimed at forcing
them to change practices he contends cost retirement savers dearly. He has
settled six of the cases, recovering $125 million for participants (before
legal fees) and getting important agreements from plan sponsors to cut plan
Now, one of
Schlichter's pending cases may be taken up by the U.S. Supreme Court. If that
happens, it would be the first time the high court has considered a case
involving high 401(k) fees. A win there could force plan sponsors to take
greater fiduciary responsibility for their plans.
The cost of
workplace retirement investing has gotten more attention in recent years,
especially since the rollout in 2012 of federal regulations requiring that fees
be spelled out more clearly in quarterly statements sent to participants. Fees
and expenses are one of the most important determinants of success in
retirement saving. The U.S. Department of Labor calculates that a
1-percentage-point difference in costs for a 35-year-old worker could reduce a
retiree's account balance by 28 percent at retirement age.
for the full article in Reuters.