Mutual of America In-House 401(k) Suit Settles for $2.75 Million

Mutual of America Life Insurance Co. signed a $2.75 million settlement agreement in a proposed class action challenging the affiliated investment funds and recordkeeping services in its 401(k) plan.

The settlement amount will be paid by the company’s insurers and is slated to benefit about 2,045 people covered by the plan, according to a settlement motion filed April 14 in the US District Court for the Southern District of New York. It represents about 26% of the plan participants’ total estimated losses, according to the motion.

The deal also requires Mutual of America to ensure that at least half of ...