New York Life Insurance Co. redeemed $1.8 billion in Eclipse mutual funds held by its own combined $2 billion pension and 401(k) plans on April 1, according to a statement filed with the SEC. The trustees of the pension and 401(k) plans "expect to effect these redemptions in kind by distributing portfolio securities pro rata to the plans, according to the statement. The plans redeemed shares in Eclipse value, growth, indexed equity, international equity, EAFE index, domestic bond and indexed bond funds. Eclipse funds are managed by New York Life Investment Management.
New York Life executives could not be reached by deadline.
New York Life is being sued in U.S. District Court in Philadelphia by a group of pension and 401(k) participants over the companys using only its own mutual funds for investing the assets.