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Individuals who participated in the Republic Mortgage Insurance Co. and Affiliated Cos.’ profit-sharing 401(k) plan and whose account balance the companies reduced by a market value adjustment to assets invested in the guaranteed interest account in or around January 2024 may be eligible to claim a cash payment from a class action settlement.
Republic Mortgage Insurance Co. agreed to pay $650,000 to resolve a class action lawsuit alleging improper administration of its profit-sharing 401(k) plan. The lawsuit focused on whether it was appropriate to maintain the GIA investment option after December 2021 and whether RMIC failed to mitigate the risk of a negative market value adjustment.
Who are the class members?
The settlement class includes:
- All participants in the RMIC profit-sharing 401(k) plan whose account balances Republic Mortgage Insurance Co. and Affiliated Cos. reduced by the market value adjustment to assets invested in the guaranteed interest account in or around January 2024
- Beneficiaries of record and alternate payees to the extent applicable
Class members are divided into two main categories:
- Current participants: Individuals who are current employees (or their beneficiaries/alternate payees) with an active account in the plan as of the distribution date
- Former participants: Individuals who are former employees (or their beneficiaries/alternate payees) who no longer have an active account in the plan
The settlement administrator will use plan records to determine eligibility and calculate payment amounts for each class member.
How much is the RMIC payout?
The total settlement fund is $650,000. After deductions for attorneys’ fees, administrative expenses and a case contribution award to the class representative, the settlement administrator will distribute the remaining funds to eligible class members s based on their proportionate investment in the GIA at the time of the market value adjustment.
It will redistribute any amounts class members do not claim on a pro rata basis.
No action needed to receive compensation
Most class members do not need to file a claim to receive their settlement award. The settlement administrator will automatically distribute payments based on plan records.
Payout options
- Current participants will automatically receive their payment in their plan account.
- Former participants will receive payment by check (for amounts $1,000 or less) or deposited into a recreated plan account and then rolled into a plan-designated IRA (for amounts more than $1,000). They can also submit a rollover form by April 16, 2026, to roll their payment over to an IRA or another eligible retirement plan.
$650,000 settlement fund breakdown
The $650,000 settlement fund covers:
- Administrative expenses: To be determined
- Attorneys’ fees and costs: Up to $216,450
- Case contribution award to class representative: Up to $10,000
- Payments to eligible class members: Remainder of the fund
Important dates
- Objection deadline: March 17, 2026
- Rollover deadline (for former participants): April 16, 2026
- Fairness hearing: April 16, 2026
When is the RMIC ERISA settlement payout date?
If the court grants final approval and there are no appeals, the settlement administrator will mail payments within about four months after the final approval order.
Why did this class action settlement happen?
The class action lawsuit alleged Republic Mortgage Insurance Co. failed to properly administer the profit-sharing 401(k) plan by not removing the GIA investment option after December 2021 and not mitigating the risk of a negative market value adjustment.
RMIC denies any wrongdoing but agreed to settle to avoid the uncertainty, expense and burden of further litigation. The settlement was reached after extensive negotiations and mediation with both sides considering the risks and costs of continuing the lawsuit.
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