TIAA pension suit foreshadows future 401(k) rule disputes

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A ruling by the federal district court of New York is binding TIAA into the alleged misconduct of its clients provides a rare glimpse into the changed legal landscape that awaits pension providers when a new 401(k) advisory rule goes into effect.

The effort to preserve a lawsuit against Teachers Insurance and Annuity Association of America for exploiting the data of employees participating in retirement plans to sell high-fee resale investment products to those same investors has won a U.S. District Court for the Southern district of New York. court approval on June 3.

In the unusual ruling, judge Katherine Polk Failla said TIAA could be held liableā€¦