Suit targets Principal Life Insurance over fees, performance
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A former participant in a 401(k) plan run by Principal Life Insurance Co. sued the company and plan fiduciaries, alleging ERISA violations in it and another 401(k) plan administered by Principal.
The primarily allegation is that Principal loaded the investment menus of both plans the choices are almost identical with proprietary products instead of checking if non-Principal products were better performing and less expensive, said the complaint filed Feb. 12 in a U.S. District Court in Des Moines, Iowa. Principal and its managers on the plan committees chose and maintained for the plans Principal investment products and plan administrative services with high fees, said the complaint, which seeks class-action status, in the case of David J. Hastings vs. Principal Life Insurance Co.
Self-Dealing ERISA Suit Targets Principal Insurance Co.
The lawsuit suggests the defendants chose and maintained Principal investment products and plan administration services because Principal, its subsidiaries and its officers benefited financially from the fees.
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A new Employee Retirement Income Security Act (ERISA) lawsuit filed in the U.S. District Court for the Southern District of Iowa accuses the Principal Life Insurance Co. of committing various fiduciary breaches in the operation of two retirement plans open to its own employees.
Also named as a defendant in the case are the retirement plans’ investment and administrative committees. The allegations against the defendants fit into the mold of similar self-dealing suits that have been filed against national financial services providers in recent years.
Philips North America buys group annuity to transfer some pension liabilities
Bloomberg
Philips North America LLC, Cambridge, Mass., purchased group annuity contracts from Metropolitan Tower Life Insurance Co. and Principal Life Insurance Co. to transfer the liabilities of certain pension plan participants.
Met Tower Life is guaranteeing 75% of participants benefits and Principal is guaranteeing 25% of benefits, according to a Feb. 11 letter to participants obtained by
Pensions & Investments.
Met Tower Life, a MetLife subsidiary, will be lead administrator and will begin sending participants their monthly benefits March 1, according to the letter.
The letter said Philips selected the two insurers based on their financial ratings, customer service, experience and reputations.
Research from Principal Financial Group
® released today indicates higher stress levels and less holiday spending among U.S. consumers as many continue to navigate the economic impacts of COVID-19. For those who are planning to spend, a majority will do so online and are decreasing expenses on travel, dining out, and entertainment.
“2020 was a challenging year for many individuals, families, and businesses, and it’s not surprising that many are having to change their typical holiday spending habits,” said Sri Reddy, senior vice president, Retirement and Income Solutions at Principal
®. “While it can be difficult to cut back, particularly during this time of year, less spending today can help make 2021 less financially stressful and support a more secure, long-term financial future.”
Homewood Suites and Canopy building as seen from Division Street, with Greystar building to the right
The company looking to redevelop the former Yazoo Brewery site in The Gulch with a building housing Hilton hotel brands Homewood Suites and Canopy will soon seek final site plan from Metro regarding the project.
Charlotte-based Tara Investments Inc., which owns the property at
910 Division St., is eyeing a building (pictured) that will house the two hotels, which previously had been slated to open in early 2022. That date now seemingly will be rescheduled, with the
Post unable to contact Tara officials by publication time.