Allianz Sued Over In-House 401(k) Funds After Class Settlement

Allianz Asset Management of America continues to offer only proprietary investments in its 401(k) plan despite recently settling claims over this practice for $12 million, two plan participants alleged in a class action complaint.

Allianz treats its $2 billion retirement plan as an opportunity to promote expensive investment products from subsidiaries AllianzGI and PIMCO, including an AllianzGI target date fund suite that’s long underperformed superior alternatives from competitors, plaintiffs Chad Rocke and Christopher Collins said in the complaint. The plan hasn’t offered any unaffiliated investment options over the past several years, a decision that cost plan participants about $6 ...