According to media reports, reinsurer Swiss Re is facing a class action lawsuit in the US. It concerns allegations about the management of pension assets at its US subsidiary, Swiss Re America Holding Corporation. As news agency AWP said on Monday, the group did not comment on the allegations because it was a court case.
According to a Bloomberg News report, the class action lawsuit against Swiss Re America was filed last Thursday in the US District Court for the Southern District of New York. The Swiss-Re subsidiary allegedly mismanaged the pension assets of the employees’ 401k pension plan, which was worth about US$1.4 billion.
A 401k plan is an employer-sponsored retirement model. According to the charge sheet, the funds acquired for the same had high cost and poor returns. In addition, Swiss Re failed to use large investment volumes to negotiate lower management costs. Annual administrative costs of $283 per person would have been reasonable at a maximum of $63, according to the complaint. (awp/mc/ps)
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