TIAA Can’t Duck $50M Challenge to Retirement Plan Loan Program

TIAA must face a proposed class action claiming its retirement plan loan program violates the Employee Retirement Income Security Act.

Melissa Haley, the retirement investor who accused TIAA of engaging in ERISA-prohibited transactions, doesn’t have to show that TIAA knew the transactions were illegal in order to move forward with her case, Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York held.

Oetken’s March 27 ruling broke from recent decisions favoring Principal Life Insurance Co. and Great-West Life & Annuity Insurance Co. Those cases held that prohibited transaction claims against entities that aren’t ...