Principal Life Insurance Co. and Community Health Systems Inc. were hit with a proposed class action challenging the Principal target-date funds in the hospital group’s retirement plan.
The Principal funds in CHS’s plan were far more expensive and performed worse than competitor funds that tracked the same financial index, the lawsuit claims. The funds’ underlying investments were other Principal funds that carried extra layers of fees that benefited Principal at the plan participants’ expense, according to the lawsuit.
The lawsuit seeks to hold Principal liable as a fiduciary under the Employee Retirement Income Security Act by pointing out that the ...
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