A federal judge in Iowa has dismissed a class-action brought by a 401(k) plan sponsor alleging Principal Life Insurance Co. breached its fiduciary duties by charging excessive fees associated with the servicing of the plans. 

McCaffree Financial Corp., the lone named plaintiff in the case, alleged Principal charged "grossly excessive" investment management fees to plan participants by structuring investment products that only invested in Principal propriety mutual funds. 

"By structuring its investment products in this way, Principal reaps substantial fees on top of the fees charged by its own mutual funds. Nothing justifies this extra layer of fees," the complaint, filed last March, said. 

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.