Tuesday, January 26, 2010
Major insurance carrier in controversy over sharing revenue payments for retirement plans
Here’s another good story (link), by Daniel Solin, about a company managing retirement plans. This time it is Nationwide, which may not be “on your side” according to the story. Nationwide allegedly “accepted revenue sharing payments” from mutual funds as a hidden “fee” for managing retirees finds. The story appears in Daily Finance and was shared with AOL subscribers Tuesday morning.
Nationwide maintains that it is not a “fiduciary” for plan participants, making it free to accept such payments. The Nationwide home page has a “Business Retirement” icon and service and it also has “Retirability Check” here.
In my 12 years at ING/ReliaStar, I don’t recall hearing the “fiduciary” issue ever being mentioned.