MassMutual Sued Over In-House Funds, Services in Worker 401(k)

Massachusetts Mutual Life Insurance Co. cost its employees tens of millions of dollars in retirement savings by using its own proprietary funds and recordkeeping services in their $4.1 billion retirement plan, according to a former employee’s federal lawsuit.

The proposed class action, filed Wednesday in the US District Court for the District of Massachusetts, accuses the company of improperly profiting off its workers’ retirement savings by putting its own expensive and poorly performing proprietary funds in their 401(k) plan. MassMutual also failed to choose the cheapest available share classes of these funds and put a substantial amount of the plan’s ...