Page 425 - DCAC Feb 2026 Files

Schlicter Lawsuit Accuses Recordkeeper of Pushing

Excessive Fees and Underperforming Investments

• Three participants in separate 401(k) and 403(b) plans filed a complaint alleging the plan’s

recordkeeper and its affiliates misled participants into transferring plan assets into expensive

investment products.

• Alleges the recordkeeper used participant data on its recordkeeping system to target rollover

candidates.

• Allegations state the recordkeeper used participant data to target participants nearing retirement

with large balances and encourage them to rollover assets to an IRA, using the recordkeeper’s

managed account services, and in some cases, proprietary investments.

• The complaint suggests managed account fees were as high as 0.55% and when combined with

investment management expense total fees could reach 1.35%.

• It should be noted that these are just allegations at this point, and there is no evidence that the

recordkeeper engaged in the alleged activities and practices.

Source: planadviser.com, August 19, 2025.
Williams-Linzey v. Empower Advisory Grp., LLC, D.N.J., No. 3:25-cv-14660, complaint 8/15/25

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