A federal judge in Des Moines, Iowa, dismissed an ERISA lawsuit against Principal Life Insurance Co. and affiliates brought by former participants in a 401(k) plan who alleged Principal provided underperforming and high-fee investment choices.
“By simply retaining specific investments that were expressly agreed to by the plan sponsor and fiduciary,” Principal did not violate any fiduciary duties, Judge Stephanie M. Rose wrote in dismissing the case.
The complaint started as a lawsuit against the plan sponsor, CHS/Community Health Systems, and Principal. The plaintiffs accused CHS and its fiduciaries of acting “imprudently” in retaining three Principal-affiliated index funds as stand-alone investment options. They also alleged ERISA violations related to the selection of Principal-affiliated index funds and certain other Principal-affiliated investments as underlying investments in the target-date series.
In December 2020, the plaintiffs and CHS announced a settlement in which CHS agreed to pay $580,000 without admitting any wrongdoing. Principal wasn't part of that settlement, and the plaintiffs repeated their allegations in their lawsuit against Principal.
“Principal was not acting as a fiduciary when it negotiated at arms-length with CHS,” the judge wrote in her decision.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
