AIG Unit’s 401(k) ‘Ransom’ Won’t Get Look From Supreme Court

A retirement plan challenging an American International Group Inc. unit’s surrender charges on outgoing clients failed to convince the US Supreme Court to consider when plan service provider arrangements fall under ERISA’s prohibited transaction rules.

The petition asked the justices to weigh in on a circuit split over whether transactions between benefit plans and their service providers qualify as prohibited transactions under the Employee Retirement Income Security Act unless they’re shown to be reasonable and necessary.

According to the retirement plan for D.L. Markham DDS, MSD, Inc., the Second, Eighth, and Ninth circuits generally take an “expansive” view ...