Benefits/ERISA
Suit Hits Annuity Endorsements
Posted Jul 17, 2007, 09:18 am CST
By Debra Cassens Weiss
A lawsuit filed last week against the National Education Association claims the group breached its duty to teachers by accepting payments from two financial firms and endorsing their annuities.
The suit says the firms charged high fees for the annuities, the New York Times reports. “The suit reflects heightened concern among retirement plan participants that excessive fees are diminishing their savings and enriching financial services firms,” the newspaper says.
Lawyers for the plaintiffs contend the NEA’s promotion of the products made the group subject to requirements of the Employee Retirement Income Security Act.