Greg was a reporter for InvestmentNews from 2015 to 2019, covering defined-contribution plans, retirement planning, insurance, taxes and estate planning, before then moving to CNBC as a Personal Finance Reporter. He tweets at: @GregIacurci
Within days, the governor of America's largest state is expected to provide access to nearly 7 million people without a retirement plan through the workplace.
The lawsuit continues a barrage of litigation filed in recent weeks related to fiduciary breaches in retirement plans.
Some retirement plan record keepers resort to aggressive sales tactics with their proprietary products, offering discounted record-keeping services if proprietary funds are used. (More on plan advice: How to choose a plan-sponsor partner to adapt to DOL fiduciary)
The Labor Department's conflict-of-interest rule is upping plan sponsors' concern for their fiduciary duty.
ERISA attorneys say the judge's decision was a complete rebuke of classic arguments in excessive-fee suits, and could provide fodder for the defense in future trials.
One attorney called the lawsuit an "attack" on the investment-management structure within variable annuities.
The wirehouse now joins a growing list of other financial-services companies sued for similar reasons.
The suit, not brought by Jerry Schlichter's law firm, could signal a 'race to the courthouse' in the university 403(b) market.
Attorneys, ever present in the 401(k) market, are beginning to target university 403(b) plans. These lawsuits follow close on the heels of ones against MIT, NYU and Yale.
Another financial services company has been targeted for costly proprietary investments in its 401(k) plan, leading to allegations of self-dealing at the expense of employees.
