New York Life Accused of Keeping Secret Profits

A new lawsuit accuses New York Life Insurance Co. of secretly profiting from the investments it sells to retirement plans in violation of federal benefits law (Wittman v. N.Y. Life Ins. Co., S.D.N.Y., 1:15-cv-09596, complaint filed 12/8/15).

According to the class action complaint filed Dec. 8 in the U.S. District Court for the Southern District of New York, the retirement plan service provider collects tens of millions of dollars in “undisclosed compensation” earned off the stable value funds it sells to 401(k) plans. The complaint accuses New York Life of keeping a slice of the investment earnings ...