Spitzer Investigating Private, Public 401(k) Plans

New York Attorney General Elliot Spitzer is nearing the end of a two-year-long investigation into how public and private retirement plans select investment options, and whether undisclosed financial arrangements affect those decisions, the Los Angeles Times reports.

In addition, Spitzer's office is hoping to determine whether participants in retirement plans pay higher investment fees due to these hidden dealings.

Further, Spitzer is also expected to come to a legal settlement with a teacher's union over its endorsement deal with an insurer soon. His office has spent several months dissecting a deal in which New York State United Teachers receives $3 million a year from ING Group. The union then encourages its members to purchase ING annuities for their IRAs.

"It has been an extensive review," said Spitzer's spokesman Darren Dopp. "We are in the final stages. We hope to have an agreement with New York State United Teachers soon."

"ING, like many other financial services companies, has received several different requests for information from different regulators, including the New York Attorney General," said ING spokesperson Dana Ripley. "It is ING's policy not to talk about any specific request. We have cooperated fully with the New York Attorney General's request for information about our relationship with New York State United Teachers."

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.