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MassMutual Settlement

As an update to the previously reported lawsuit (included in the 4Q 2013 Litigation Update), MassMutual Life Insurance Company will pay almost $31 million to settle a 2013 lawsuit filed by 14,000 plan participants in the MassMutual 401(k) Plan, who alleged that MassMutual and top executives at the firm populated the defined contribution plan with proprietary, high fee funds in violation of ERISA. As part of the settlement, MassMutual also agreed to keep the plan’s recordkeeping fees no higher than $35 per participant for the next 4 years. The settlement agreement is pending final court approval.

www.bna.com; June 17, 2016.