Principal Backed by Chamber, Life Insurers in 401(k) Fund Appeal

September 17, 2021

Sept. 17, 2021, 8:08 PM

Principal Life Insurance Co. received support from the Chamber of Commerce and the American Council of Life Insurers in an Eighth Circuit appeal over how it earns profits from the guaranteed investment products it offers in 401(k) plans.

The Chamber’s brief, filed Thursday, urges the court to reject the “current state of affairs” in retirement plan litigation, in which “aggressive and emboldened plaintiffs’ lawyers” bring waves of lawsuits for “in terrorem value,” leaving plan sponsors “scrambling to avoid litigation risks.” The Chamber also attacks the arguments levied against Principal in this case, which it says are based on ...