Ameriprise Financial has agreed to pay $27.5 million to settle a class-action claim alleging improper use of proprietary funds and high fees in its 401(k) plan.

Settlement of the suit, brought in 2011 and filed by Ameriprise employees under the Employee Retirement Income Security Act of 1974, is still subject to a fairness hearing and final approval by the U.S. District Court for the District of Minnesota.

According to court documents, Ameriprise has also agreed to a number of changes in its retirement plan.

During a three-year period, Ameriprise will conduct competitive bidding for record keeping and investment consulting services; pay flat fees for record keeping; receive payments from providers only for direct administrative costs; improve disclosure of investment expenses; and consider the use of lower-cost investment options.

Ameriprise has already implemented those changes.

“The settlement does not require any changes to our plan, which will maintain the existing broad and competitive selection of investment options,” said Ameriprise spokesman John Brine in a statement.

“The plan has always included funds we manage, as well as funds from other companies and a brokerage window that offers participants additional choice,” Brine said.

The employee-plaintiffs’ attorney handling the case, Jerome Schlichter, a senior partner at Schlichter Bogard & Denton LLP in St. Louis, said in a statement that competitive bids and enhanced communications and disclosure will increase the value of the employees’ and retirees’ 401(k) plans "for years to come.”