A Putnam internal review stemming from its role in the mutual fund scandal is what uncovered the 401(k) transgressions, according to Putnam spokeswoman Laura McNamara, who also said that everything has since been corrected.
Putnams top retirement plan attorney, Ralph Derbyshire, earlier issued a statement saying that in cases where 401(k) plan sponsors absorb administrative costs that could be charged directly to plan participants, Putnam occasionally issues rebates. Further, Derbyshire said, the money comes out of Putnams corporate assets, not from the underlying mutual funds marketing fees.
"Plan expense reimbursement agreements are straightforward agreements which are commonly used across the deferred [contribution] industry," Putnam spokeswoman Nancy Fisher told Reuters.
