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American Red Cross Sued Over $1.2 Billion Retirement Plan (1)

March 2, 2021, 6:04 PMUpdated: March 2, 2021, 10:40 PM

Four former American National Red Cross employees filed a proposed class action Tuesday, telling a Washington, D.C., federal judge that their $1.2 billion retirement plan is full of expensive investment options and excessive fees.

The Red Cross plan, which covers more than 22,000 people, has one of the highest overall costs of any similarly sized retirement plan, charging annual administrative fees that ranged between $126 and $232 per person, the employees said. Most similarly sized plans paid only $40 per participant, per year, they claim.

And several of the plan’s funds charge extra, unnecessary layers of fees that further drain ...