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Class Certified in TIAA Retirement Plan Loan Lawsuit (1)

Nov. 25, 2020, 5:21 PM; Updated: Nov. 25, 2020, 7:24 PM

The Teachers Insurance & Annuity Association must face a class action over a retirement plan loan program from which it allegedly unlawfully kept over $50 million per year when borrowers repaid the loans, the Southern District of New York said Wednesday.

Named plaintiff Melissa Haley’s evidence showed that TIAA provided administrative services to nearly 8,000 401(k)-style retirement plans that participated in a loan program in which it required borrowers to invest 110% of their loan balance into a low-interest general fund as collateral. TIAA kept a portion of the interest for itself, in violation of the Employee Retirement Income Security ...

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