News You Can Use: Caterpillar capitulates on 401(k) fee suit

The holidays will be even happier for some 80,000 current and former participants in Caterpillar’s 401(k) plan. The construction equipment manufacturer has settled a lawsuit charging the employer with excessive 401(k) fees, agreeing to pay $16.5 million to participants, EBN sibling Money Management Executive reports.

The company also agreed to replace retail mutual funds in the plan with lower-cost institutional funds and hire an independent consultant to review the plan for the next two years.

Until the furor over health care reform took over Washington, lawmakers were hot to fix fees. Although plans for fee reform seem to be on ice for the foreseeable future, stay up to date on the latest news. Click here for full EBN coverage.