March 11, 2021
A participant in a 401(k) plan run by New York Life Insurance Co. has sued the company and plan fiduciaries alleging violations of their ERISA responsibilities for two company retirement plans.
“This suit is about corporate self-dealing and the prohibited transfer of employees’ retirement assets to defendants at the expense of the retirement savings of company employees and its agents,” said the March 2 complaint filed in a U.S. District Court in New York in the case of Stuart Krohnengold vs. New York Life Insurance Co. et al.
Mr. Krohnengold is a participant in the New York Life Insurance Co. Employee Progress-Sharing Investment Plan, and he also is suing, as part of a class action claim, to represent the New York Life Agents Progress-Sharing Investment Plan. The former had assets of $3.51 billion and the latter had assets of $846 million, both as of Dec. 31, 2019, and both according to the latest Form 5500s.
Mr. Krohnengold’s complaint also accused the defendants of offering proprietary products “earning New York Life and its affiliates windfall profits at the expense of the retirement savings of New York Life employees and its agents.”
Cohen Milstein Sellers & Toll PLLC represents the proposed class.