By Jane Meacham, retirement plans editor
One of the largest multimillion-dollar settlements yet has been reached between an employer retirement plan sponsor and a class of participants over “excessive fees” paid for plan services.
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In the agreement filed in the U.S. District Court for the District of Massachusetts in the case Dennis Gordan et al. v. Massachusetts Mutual Life Insurance Co. et al., No. 13-CV-30184-MAP (D. Mass), the insurer agreed to pay $30.9 million to current and former participants of the MassMutual Thrift Plan and the Massachusetts Mutual Life Insurance Co. Agent Pension Plan. The company also consented to meet other, nonmonetary terms over 4 years to improve the plans’ operation and administration.
The agreement awaits court approval. MassMutual denied the allegations and admits no fault or liability in the suit. The settlement amount is not material to the company’s financial strength or its 2016 results, according to press reports.