Plan participants who say TIAA pushed them from low-fee plans into pricey alternatives are moving forward with claims the wealth management and investing firm breached its fiduciary duties to its participants, under the Employee Retirement Income Security Act, ruled a U.S. District Court judge in New York last week.
Teachers Insurance & Annuity Association of America may also be subject to liability under ERISA for knowingly participating in the alleged misdeed of its retirement plan sponsor clients. Plan participants John Carfora, Sandra Putnam and Joan Gonzalez, who were part of separate university defined contribution plans serviced by TIAA, filed the initial complaint against the firm in 2021, alleging TIAA cross-sold the firm's adviser-managed account service, Portfolio Advisor, which comes at a higher cost than remaining in the plan.
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