Xerox HR Solutions allegedly overcharged the worker for their retirement plans.
HR Dive reported that three employees from Ford are suing Xerox for “over charges for 401k investment advice”. The retirement plan that Ford Motors offered its workers gives an option of “getting professional investment advice”, but those suing are questioning whether Xerox HR Solutions is “taking a cut out of the fee they pay” for the advice on investment from the investment manager Financial Engines, and in the process, “inflating the charges”.
The Ford workers want to know what sort of relationship there is between Xerox and Financial Engines, and if there is “an arrangement” between them. The suit was filed in the US District Court for the Eastern District of Michigan in Detroit, and the plaintiffs seek a class action status. The court records show that Ford’s retirement plan participants paid a total of $5.79 million (€5.56 million) for investment advice from Financial Engine.
Of that amount Xerox received $1.84 million (€1.7 million), which is more than 30 percent of the fees. The records also showed that Ford’s plans had a total net asset of $13.94 billion (€13.4 billion) as of 31 December 2015.