Compliance July 26, 2023

Mitsubishi Chemical Group Sued by Former Worker

The manufacturer was targeted for alleged fiduciary breaches in the management, operation and administration of the plan, according to the complaint.

Reported by

Mitsubishi Chemical America’s retirement plan fiduciaries are facing a class action complaint filed against the company on July 19 that alleged they caused plan participants to pay excessive fees for administrative services and failed to negotiate lower per-participant fees.

Robert Humphries, a former employee sued Mitsubishi Chemical America Inc., the retirement plan administrative committee and the signatory of the plan’s annual Form 5500, claiming the defendants failed to investigate the availability of lower-cost share classes of certain mutual funds, failed to prudently select and monitor the plan’s stable value fund and failed to appropriately monitor and supervise investment professionals responsible for carrying out its investment strategy. The complaint was filed in U.S. District Court for the Southern District of New York.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

“The erosive effect of excessive fees and the resulting lost returns compounds over time substantially lowering the corpus of participants’ retirement investment,” the complaint states.

Kitty Antwine, who filed the plan’s Form 5500 plan to the IRS, was a fiduciary to the plan during the purported class period and is a named defendant, as are 10 unnamed people.

“Because the Plan could have invested in identical mutual funds with a lower share class, Defendants’ actions were directly erosive to the Plan’s growth,” the complaint adds. “Defendants thus caused Plaintiff and other Plan participants/beneficiaries harm by not just forcing them to pay higher fees, but also caused lost yield and returns as a result of those higher fees on the majority of investments offered through the Plan.”

Humphries is seeking compensation to the plan for all losses resulting from the defendants’ breaches of fiduciary duties and the restoration to the plan of any lost profits, the complaint shows.

Though not named as defendants, certain service providers are fiduciaries to the plan participants and are parties in interest to the lawsuit, whose service and compensation the defendants had a duty to monitor: Prudential Trust Co., which served as trustee of the plan; Prudential Insurance Co. of America and Prudential Retirement Insurance and Annuity Co. which served as custodians to the plan for certain investments; and UBS Financial Services Inc. was the plan’s financial consultant from 2017 to 2020, followed in 2020 by SageView Advisory Group LLC, according to the complaint.  

The plan was established on January 1, 1994, and was known as the Mitsubishi Chemical Holdings America Inc. Employees’ Savings Plan until April 1, 2017, the complaint states.

Throughout the class period, the plan had up to 4,656 participants and between $376.7 million and $700.3 million in assets. As of December 31, 2021, the plan had more than 4,656 participants, according to the complaint.

The plaintiff seeks to certify a class period applying to all participants in or beneficiaries of the Mitsubishi Chemical America Employees’ Savings Plan from six years prior to the filing of the complaint through the date of judgment, excepting the defendants.

Representatives for the defendants did not return a request for comment.

Humphries is represented by attorneys with the law offices of Pomerantz LLP, based in New York City.

Compliance July 26, 2023

Upcoming EBSA Webcast Will Focus on Helping Women Save for Retirement

The August 16 webinar will focus on challenges and circumstances women face when preparing for retirement, as well as how to make the most of an employer-provided plan.

Reported by

As women often face additional obstacles when saving for retirement, the Department of Labor’s Women’s Bureau and Employee Benefits Security Administration will host a webinar next month centered around ways women can make the most of their employer-provided plan and make prudent financial decisions when nearing retirement. 

The webcast, “Helping Women Take the Mystery Out of Retirement Planning,” will be held on August 16 from 2 to 4 p.m. EDT. The Social Security Administration, the Centers for Medicare & Medicaid Services and the Consumer Financial Protection Bureau will also provide information on key issues for women in planning for retirement. 

Get more!  Sign up for PLANSPONSOR newsletters.

While some women may be able to rely on employer retirement plans, many women interrupt their careers to raise children or act as caregivers. That can result in less savings in a workplace retirement plan, reduced personal savings and fewer Social Security benefits. 

Women’s retirement resources also need to last longer, because women typically leave the workforce earlier and live longer than men, often into their 80s and 90s, EBSA’s description of the webinar stated. 

“This webcast will help women nearing retirement unravel the mystery of preparing for life after work including the decisions you need to make, when you need to make them and what to consider so you can have a financially secure retirement,” EBSA stated.  

The webcast will cover: 

  • Challenges and circumstances women face and why it is important to plan ahead; 
  • Making the most of employer-provided retirement plan and checking to see if retirement savings are on track;  
  • Social Security and Medicare benefits, including factors to consider in deciding when to sign up for Medicare and when to begin claiming Social Security benefits and what they cover; and 
  • How to avoid financial abuse, fraud and scams. 

The webcast can be helpful for people nearing retirement or helping a relative prepare for the future, according to EBSA. 

Registration is available, and a link to the webcast will be emailed to each registrant.  

Individuals with disabilities who need special accommodations are advised to email golding.debra@dol.gov.  

«