NEW YORK — An ING Groep unit that administers 401(k) retirement plans has agreed to pay $5.8 million to settle allegations it didn’t tell clients that it would pocket market gains on trades that were delayed.
ING Life Insurance & Annuity Co., a Windsor, Conn.- based unit of the largest Dutch financial services company, will pay $5.25 million to about 1,400 retirement savings plans and a penalty of $524,509 to the US government, according to a settlement disclosed Monday by the Department of Labor.
‘‘All of us who are planning for retirement deserve to know how our savings and investments are being handled, how much is being charged in fees, and how much these transactions impact final account balances,’’ Acting Secretary Seth D. Harris of the Labor Department said.
The accord represents the amount ING will pay plans for net gains it retained when there were errors or delays in processing a trade or redemption from a 401(k) account. If the transaction resulted in a loss from the time of the request, ING restored funds to the account, the Labor Department said.
‘‘Our longstanding policy has been to put customers in the position they would have been in had a processing error never occurred,’’ Joe Loparco, a spokesman for Amsterdam-based ING, said in an e-mail.