Ameriprise Agrees to $27.5M 401(k) Settlement

“The non-monetary relief obtained, in addition to the financial terms, not only significantly benefits Ameriprise’s employees and retirees but also sets a standard for best practices for plan sponsors,” stated Schlichter, in a statement shared with the Star Tribune of Minneapolis. “Competitive bids and enhanced communications and disclosure will increase the value of the employees’ and retirees’ 401(k) plans for years to come.”

In a 2012 ruling, a judge refused to dismiss the lawsuit, which included accusations that Ameriprise had loaded up the company 401(k) plan with expensive, underperforming mutual funds and was charging employees excessive fees.

Ameriprise acquired Columbia Management from Bank of America in 2010 and then merged its RiverSource funds with those of Columbia Management; Columbia funds, as well as products from non-Amerprise fund firms, are available to retirement-plan participants, the company says.

Earlier this month, Ameriprise said Don Froude, head of the Personal Advisors Group, would leave this post on March 30. He has been in the role since September 2008 and will work on advisor-focused initiatives going forward.

Bill Williams and Patrick O’Connell – who lead the independent and employee advisor channels, respectively – will lead these channels starting at the end of the month, according to a spokesperson. Both Williams and O’Connell have been with firm for 20 years or more.

Amerprise’s advisor headcount stands at 9,672 as of Dec. 30; this includes 2,096 employee advisors and 7,576 independent franchisee reps.

— Check out 12 Best & Worst Broker-Dealer 401(k) Plans: 2015 on ThinkAdvisor.