Cash Plus Structural Reforms
According to a memorandum supporting the motion, the $13.4 million settlement fund will cover class counsel’s fees and litigation expenses, with the remainder allocated to class members.
But the agreement goes beyond dollars.
Court filings reveal Liberty Mutual has agreed to implement non-monetary reforms designed to protect plan participants going forward. For three years, the company must instruct its plan recordkeeper in writing not to solicit employees for cross-selling proprietary financial products — including IRAs, managed accounts, investment products, and life or disability insurance.
In addition, the company’s retirement committee must initiate a request for proposal within 180 days of the settlement’s effective date for “investment and administrative consulting services unaffiliated with Liberty Mutual.” The RFP must identify at least three qualified candidates. The current consultant, Goldman Sachs Asset Management, may be considered among them.
The structural commitments, plaintiffs argue, are intended to reinforce fiduciary oversight and prevent conflicts of interest from creeping back into plan administration.
