Schneider Electric, Aon Must Face Challenge to 401(k) Fund Swap

March 29, 2021

A proposed class of participants in Schneider Electric Holdings Inc.'s $3.7 billion 401(k) plan is moving forward with the bulk of its lawsuit challenging a plan redesign that allegedly swapped a series of “top-rated” Vanguard funds with expensive and untested funds from the plan’s investment manager, according to a decision issued Monday by a Boston federal judge.

The Employee Retirement Income Security Act lawsuit accuses Schneider and defendant Aon Hewitt Investment Consulting Inc. of restructuring the plan to introduce expensive collective investment trusts that paid fees to Aon, including a suite of brand new target date funds that had no...