The scheduled two-year investigation into 401(k) investments will try to find out if undisclosed financial arrangements are shaping investments for these plans, said Spitzer spokesman Darren Dopp, according to the Los Angeles Times. The probe will also seek to determine whether participants in retirement plans are paying higher investment fees as a result of the hidden dealings, he added.
The Times recent series of stories on retirement plan fees is here . A free registration is required.
According to the Times, the New York attorney general’s office is predicted to reach a settlement soon over a New York State United Teachers union deal with ING Group, in which the union gets $3 million a year from the Dutch insurer if it recommends members enroll in an annuity with high fees and lower overall returns (See NY Retirement Fund in Payment Arrangement with Investment Company ).
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