Transamerica Life Insurance Co. is the latest 401(k) service provider to defeat a lawsuit by retirement investors challenging the fees charged to their 401(k) plan.
Retirement plan service providers can’t be liable as fiduciaries under federal benefits law for negotiating their compensation with employers or receiving the agreed-upon payments, the U.S. Court of Appeals for the Ninth Circuit held Feb. 23. That’s because the employer sponsoring the 401(k) plan is free to reject the deal and walk away, the court said.
The fiduciary status of 401(k) providers such as Transamerica has driven several high-profile lawsuits over 401(k) plan fees in ...
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