Ameriprise - It's What They Do

Here's a news item on Amerprise workers bringing a lawsuit against the company for loading up the company 401(k) plan with its own expensive, underperforming mutual funds and charging employees excessive fees.

The article states,

The fees for the RiverSource funds that are current investment options are significantly higher than for comparable mutual funds in other 401(k) plans as well as the other options available in the Ameriprise plan, according to the complaint. For example, the fee for the RiverSource midcap fund around 2005 was a high 1 percent, and the comparable Vanguard fund charged 0.08 percent, the plaintiffs argue.

I can understand the ongoing business strategy of exploiting clients and plan administrators by over-charging for funds.  After all, it's what they do.  But...their own employees?  They surely understand they are a fidiciary as administrators of their employees' plan, which they are not as providers to other plans.

I would think this would be a wake-up call to plan administrators around the country.