DeMoulas Super Markets settled for $17.5 million in a class-action lawsuit regarding its profit-sharing plan that didn\u2019t have a 401(k) feature.<\/p>\n\n\n\n
The problem in the case was that the Super Market invested assets of the plan too conservatively for its employee. The profit-sharing plan had approximately 11,000 to 13,000 and between $580 million and $756 million in assets between 2013 and 2017. The profit-sharing plan contained only one investment into which participants were automatically invested. The plan\u2019s investment policy statement (IPS) called for 70% of participants\u2019 assets to be automatically allocated into domestic fixed income options and 30% to be put into equities.<\/p>\n\n\n\n
The default target allocations might have been good for someone nearing retirement, but not so great for someone who was decades away from retirement. I\u2019m just surprised that a profit-sharing plan that was apparently trustee directed, would have such an allocation like that.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" DeMoulas Super Markets settled for $17.5 million in a class-action lawsuit regarding its profit-sharing plan that didn\u2019t have a 401(k) feature. The problem in the case was that the Super Market invested assets of the plan too conservatively for its … Continue reading