Mutual of America Accused of Self-Dealing in Worker 401(k) Plan

Mutual of America Life Insurance Co. improperly profits off its workers’ retirement savings by using its own investment funds and recordkeeping services in their $436 million 401(k) plan, a lawsuit filed in Manhattan federal court claims.

Mutual of America’s decision to use its own proprietary recordkeeping platform caused its 401(k) plan to pay annual administrative fees about 10 times higher than necessary, plan participant Eric Goldstein and his co-plaintiffs said in a proposed class action complaint. The plan also offered 29 Mutual of America investment funds that should have been replaced with less expensive and better performing alternatives, Goldstein claims. ...