Liberty Mutual Sued Over 401(k) Fee Levels, Forfeiture Usage

Liberty Mutual Group Inc. mismanages its employees’ 401(k) plan by failing to rein in administrative fees and improperly using forfeited contributions for its own benefit, a federal lawsuit alleges.

Liberty Mutual plan participants have been paying between $80 and $130 each year in administrative costs, when participants in similar plans pay between $5 and $47 each year for the same services, according to a proposed class complaint filed Tuesday in the US District Court for the Northern District of California.

The lawsuit also takes aim at how Liberty Mutual handles the unvested 401(k) contributions forfeited by workers who leave their ...