TIAA Sued Over Retirement Plans’ In-House Fund Share Classes (1)

Teachers Insurance & Annuity Association of America mismanages its employees’ retirement plans by filling them with expensive, in-house investment options, a plan participant alleged Tuesday in a proposed class complaint.

TIAA’s retirement plans offer the company’s proprietary, in-house managed funds in high-cost share classes, despite the ready availability of cheaper versions of the same investments, according to the lawsuit. This “unnecessary waste of assets” forces the plans to pay millions of dollars in unnecessary fees that ultimately benefit the company at the expense of workers’ retirement savings, plaintiff Brian Byrne said in a complaint filed in the US District Court ...