Republic Mortgage Insurance Co. $650,000 ERISA Settlement, April 16, 2026 Deadlines
Republic Mortgage Insurance Co. agreed to pay $650,000 to settle allegations it mismanaged its profit sharing 401(k) plan by failing to remove a Guaranteed Interest Account (GIA) that suffered market-value losses in January 2024. If you participated in RMIC’s profit sharing plan and had assets in the GIA, you may automatically receive compensation. The court will hold a final approval hearing on April 16, 2026.
What Is the Republic Mortgage Insurance ERISA Settlement About?
The lawsuit, Allison v. Republic Mortgage Insurance Company (Case No. 1:24-cv-00950), alleges RMIC violated the Employee Retirement Income Security Act (ERISA)—federal law regulating employee benefit plans—by breaching its fiduciary duty to plan participants.
The complaint claims RMIC failed to remove the Guaranteed Interest Account from the plan’s investment lineup after December 2021 and failed to mitigate the risk of negative market-value adjustment. When the GIA contract terminated around January 2024, participants’ accounts suffered losses totaling approximately $13 million in market-value adjustments.
RMIC denies wrongdoing and maintains it always acted prudently in participants’ best interests, but agreed to settle to avoid prolonged litigation.
Who Is Eligible to Receive Compensation?
According to plan records, approximately 100 Settlement Class Members qualify:
Automatic Eligibility: You’re a Settlement Class Member if you participated in RMIC’s Profit Sharing 401(k) Plan and had assets invested in the Guaranteed Interest Account when the market-value adjustment occurred around January 2024.
No Claim Form Required: Unlike most class action settlements, you do not need to file a claim form to receive payment. The settlement administrator will automatically calculate and distribute payments based on plan records.
Current vs. Former Participants:
- Current Participants with active plan accounts will receive payments directly into their plan accounts
- Former Participants without active accounts have rollover options (explained below)
Similar employee benefit disputes have resulted in substantial settlements. For context, the Independent Living Systems Agrees To $14M Settlement demonstrates how companies resolve large-scale claims affecting thousands of individuals.
What RMIC Allegedly Did Wrong
The lawsuit centers on fiduciary breaches under ERISA:
Failure to Remove Risky Investment: The complaint alleges RMIC’s plan fiduciaries should have removed the GIA from investment options after December 2021 when risks became apparent. By keeping it available, participants’ retirement savings remained exposed to market-value adjustment risks.
Failure to Mitigate Losses: ERISA requires fiduciaries to act prudently when managing plan assets. The lawsuit claims RMIC failed to take steps to minimize the risk of losses when the GIA contract terminated.
Breach of Fiduciary Duty: Under ERISA, plan fiduciaries must act solely in participants’ best interests with the care, skill, and diligence of a prudent person. The alleged failure to address GIA risks violated these duties.
When the GIA terminated around January 2024, the market-value adjustment locked in losses that the lawsuit claims could have been avoided through proper fiduciary oversight.
How Much Money Can You Receive?
The settlement uses a specific allocation formula based on your GIA holdings:
Total Settlement Fund: $650,000
Deductions Before Distribution:
- Attorney fees (up to 1/3 of settlement, or approximately $216,667)
- Administrative expenses
- Case contribution award to class representative
Net Settlement Amount: Approximately $550,000 (estimated after deductions)
Your Individual Payment: Your Settlement Credit Amount equals the Net Settlement Amount multiplied by your percentage of total GIA assets at the time of the market-value adjustment.
Example Calculation: If the Net Settlement Amount is $550,000, total GIA assets were $13,041,782, and you had $40,000 in the GIA:
- Your percentage: $40,000 ÷ $13,041,782 = 0.3067%
- Your payment: $550,000 × 0.3067% = $1,686.89
This example illustrates the formula. Your actual payment depends on your specific GIA balance and final court-approved deductions.
Critical Deadlines You Must Know
Rollover Form Deadline: April 16, 2026 Former participants who want settlement payments rolled over to an IRA or another qualified retirement plan must submit the Rollover Form by April 16, 2026. Download the form at www.rmicplanclassaction.com/settlement-documents.
Objection Deadline: March 17, 2026 If you disagree with the settlement terms, you must file written objections postmarked by March 17, 2026. See the settlement website for detailed objection procedures.
Notice of Intent to Appear: April 2, 2026 If you want to speak at the fairness hearing, you must file notice of intent to appear by April 2, 2026.
Final Approval Hearing: April 16, 2026 at 2:00 PM The court will hold a fairness hearing at the U.S. District Court for the Middle District of North Carolina, L. Richardson Preyer Courthouse, 324 W. Market Street, Greensboro, NC 27401-2544, Courtroom 3.
How You’ll Receive Your Payment
The distribution method depends on your participant status:
Current Participants (Active Plan Accounts): Your settlement payment will be deposited automatically into your existing plan account. No action required.
Former Participants (No Active Account):
Option 1 – Submit Rollover Form by April 16, 2026: Request your payment be rolled over directly to:
- An individual retirement account (IRA)
- Another employer-sponsored qualified retirement plan
Option 2 – Do Nothing (Automatic Distribution):
- If payment is $1,000 or less: You’ll receive a check (with taxes withheld)
- If payment is $1,001-$7,000: Deposited into recreated plan account, then automatically rolled to plan-designated IRA
- If payment exceeds $7,000: Deposited into recreated plan account in the plan
For similar employee benefit settlements, see the Facebook Class Action Lawsuit Payout Settlement Checks Finally Going Out, which demonstrates how large settlements proceed through payment distribution.
Understanding ERISA and Guaranteed Interest Accounts
What Is ERISA? The Employee Retirement Income Security Act is federal law protecting participants in private-sector retirement and health plans. It sets minimum standards for plan management and requires fiduciaries to act prudently.
What Was the Guaranteed Interest Account? A GIA is an investment option offering guaranteed interest rates for specified periods. However, if withdrawn before maturity or if the contract terminates, a market-value adjustment can reduce the account value based on current interest rates.
Why Did Losses Occur? When interest rates rise, GIA values typically decline if terminated early. The January 2024 market-value adjustment occurred during a period of rising interest rates, causing significant losses to participants’ GIA balances.
Fiduciary Responsibility: Plan fiduciaries should monitor investments and remove options that pose unreasonable risks to participants. The lawsuit alleges RMIC failed to meet this standard.
Settlement Status and Timeline
November 2024: RMIC agreed to $650,000 settlement
January 2026: Court granted preliminary approval and authorized settlement notices
March 17, 2026: Objection deadline
April 2, 2026: Notice of intent to appear deadline
April 16, 2026: Final approval hearing and rollover form deadline
After Final Approval: Payments distributed approximately 4 months after court approval (assuming no appeals)
Expected Payment Date: Late summer or fall 2026 (if no appeals filed)
Official Settlement Resources
Settlement Website: www.rmicplanclassaction.com
Settlement Documents:
- Settlement Agreement
- Long Form Notice
- Rollover Form
- Court Orders All available at www.rmicplanclassaction.com/settlement-documents
Settlement Administrator Contact:
- Phone: 800-272-5630
- Email: [email protected]
- Mail: RMIC Profit Sharing 401(k) Plan Litigation, c/o Atticus Administration, PO Box 64053, St. Paul, MN 55164
Court Records: Available through PACER at www.pacer.gov or in person at the Clerk’s Office, U.S. District Court for the Middle District of North Carolina, Greensboro.
Common Questions About This Settlement
Can I Opt Out? No. This settlement was certified under Federal Rule 23(b), meaning all class members are bound by the settlement if approved. You cannot exclude yourself, but you can object.
Do I Need a Lawyer? No. The court appointed Engstrom Lee LLC and Morgan & Morgan, P.A. as class counsel to represent all class members. You may hire your own attorney at your own expense if desired.
What If I Do Nothing? Current participants will automatically receive payments in their plan accounts. Former participants will receive payments according to automatic distribution rules based on payment amounts unless they submit rollover forms.
What Gets Released? By accepting settlement benefits, you release all claims related to the GIA issues raised in the lawsuit. Review the full release language in the Settlement Agreement on the settlement website.
Broader Implications for 401(k) Plans
This settlement highlights critical issues in retirement plan management:
Interest Rate Risk: Plan fiduciaries must carefully monitor guaranteed interest products during periods of rising rates to protect participants from market-value adjustment losses.
Investment Monitoring Duties: ERISA requires ongoing evaluation of plan investments. Fiduciaries cannot simply offer investments and ignore changing risk profiles.
Participant Protection: Courts increasingly hold plan sponsors accountable when investment decisions harm participants’ retirement savings.
Similar to issues addressed in the Walmart Class Action Lawsuit, companies must carefully manage their obligations to employees and consumers.
What Happens If You Disagree
If you believe the settlement is unfair, you can object by March 17, 2026.
Objection Requirements: Your written objection must include:
- Case name and number: Allison v. Republic Mortgage Insurance Company, Case No. 1:24-cv-00950-CCE-LPA
- Your full name, address, and phone number
- Description of your position with factual and legal grounds
- Supporting documents
- Attorney information (if represented)
- Your signature
Where to File: Mail to both Class Counsel (addresses on settlement website) and file with the Clerk of Court at the address above.
The court will consider all timely objections at the April 16, 2026 fairness hearing.
Frequently Asked Questions
What is the Republic Mortgage Insurance Co. $650,000 ERISA Settlement?
RMIC agreed to pay $650,000 to settle allegations it violated ERISA by failing to remove a Guaranteed Interest Account that suffered market-value losses in January 2024, harming approximately 100 profit sharing plan participants.
Am I eligible to receive money?
Yes, if you participated in RMIC’s Profit Sharing 401(k) Plan and had assets in the Guaranteed Interest Account when the market-value adjustment occurred around January 2024. About 100 class members qualify.
Do I need to file a claim form?
No. Payments are automatic based on plan records. However, former participants who want payments rolled over to an IRA must submit a Rollover Form by April 16, 2026.
How much money will I receive?
Your payment equals the Net Settlement Amount (estimated $550,000) multiplied by your percentage of total GIA assets. For example, if you had $40,000 in a $13 million GIA, you’d receive approximately $1,687.
When will I receive my payment?
Payments will be distributed approximately 4 months after the April 16, 2026 final approval hearing, assuming no appeals. Expected timeframe is late summer or fall 2026.
What if I’m a former employee?
Former participants without active plan accounts can submit a Rollover Form by April 16, 2026, to direct payments to an IRA or qualified plan. Otherwise, payments are automatically distributed based on amount thresholds.
Can I object to the settlement?
Yes. You must file written objections with the court and mail to class counsel by March 17, 2026. You cannot opt out of the settlement, but you can object to its terms.
Last Updated: January 18, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
What to Do Next: Visit www.rmicplanclassaction.com for complete settlement information. Former participants: submit Rollover Form by April 16, 2026 if you want payment rolled to an IRA.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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