Mutual of America Gets Nod for $2.75 Million 401(k) Settlement

Mutual of America Life Insurance Co. received initial approval for a $2.75 million class settlement with workers challenging the affiliated investment funds and recordkeeping services in its 401(k) plan.

The settlement, which is slated to benefit about 2,045 people covered by the plan, will be paid by the company’s insurers and represents about 26% of the plan participants’ total estimated losses, according to the settlement motion. It also requires Mutual of America to ensure that at least half of the plan’s investment options are unaffiliated with the company throughout the next three years.

Magistrate Judge Ona T. Wang of …