Jackson National Life Insurance Co. agreed to pay $4.5 million to settle allegations by participants in the company's 401(k) plan that fiduciaries violated ERISA guidelines in the management of the plan.
The settlement agreement, which must be approved by a U.S. District Court judge, was filed with the court Nov. 1. Plaintiffs filed the suit in March 2017 in District Court in Lansing, Mich.
Jackson National "admits no wrongdoing or liability with respect to any of the allegations or claims," said the settlement agreement in the class-action case Pease et al. vs. Jackson National Life Insurance Co.
Plan participants alleged that the 401(k) plan was filled with "high-cost proprietary investment products" managed by Jackson National and its affiliates, the lawsuit said. Plan managers failed to consider similar low-cost investment options offered by other investment managers, the lawsuit said.
Subject to court approval, the four law firms representing the plaintiffs will be paid a total of up to $1.5 million, which is part of the settlement amount.
The Jackson National Life Insurance Co. Defined Contribution Plan had $953.4 million in assets as of Dec. 31, 2017, according to the latest Form 5500 filing.