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New York Life Settles 401(k) Fee Lawsuit for $3M

Feb. 15, 2017, 7:32 PM

New York Life Insurance Co. will pay $3 million to settle claims that it profited from its workers’ 401(k) plans by offering a high-fee, in-house index fund instead of a cheaper alternative (Andrus v. N.Y. Life Ins. Co., S.D.N.Y., No. 1:16-cv-05698-KPF, motion for preliminary settlement approval filed 2/14/17).

The deal, announced in court papers filed Feb. 14 and subject to approval by a federal judge, resolves a proposed class action challenging New York Life’s decision to include its MainStay S&P 500 Index Fund in its workers’ 401(k) plans instead of a lower-fee Vanguard index fund. ...