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MASSACHUSETTS AND NATIONWIDE LIFE AMICABLY SETTLE THEIR DISPUTE

 COLUMBUS, Ohio, Feb. 25 /PRNewswire/ -- Peter Frenzer, president of Nationwide Life Insurance Company, today announced a settlement of the legal dispute with the Commonwealth of Massachusetts concerning the deferred compensation plan for public employees.
 He said that the lawsuit has been settled amicably and in a manner that preserves the best interests of the 131,000 public employees who participate in the state plan.
 Under the settlement terms, Nationwide will terminate its fixed annuity contract with Massachusetts and transfer to the Commonwealth all plan funds held for investment by the company. Those funds at the end of 1992 were $676,026,299.71.
 The funds, subject to a one percent surrender charge, will be transferred in installments beginning April 15. The transfer is to be completed by July 30, 1993.
 The parties agree to release each other from their respective claims and counterclaims. A lawsuit containing those claims, pending in Suffolk Superior Court, will be dismissed.
 The agreement permits Nationwide Life to participate in the future in the competitive bid process for becoming a product provider to the state's deferred compensation plan. A statement from Nationwide Life's president follows:
 "Nationwide Life is pleased to announce that it has resolved all differences with the Commonwealth of Massachusetts concerning the deferred compensation program. It was unfortunate that those differences resulted in litigation. However, the agreement identifies those interests shared by the Commonwealth and Nationwide and permits an amicable withdrawal by Nationwide as a product provider from the Commonwealth's deferred compensation plan.
 The uppermost concerns shared by everyone throughout the process were the interests of the plan participants and their accumulated assets in the deferred compensation plan targeted for their retirement. In that spirit, we concluded that protracted litigation involving the Commonwealth and Nationwide would not serve a useful purpose, nor would it be beneficial to the plan participants.
 While Nationwide Life is terminating its participation in the Commonwealth's deferred compensation plan under the agreement, it retains the right to offer future proposals to provide products and services to the Commonwealth's deferred compensation plan participants."
 -0- 2/25/93
 /CONTACT: Lou Fabro, media relations director of Nationwide Insurance Company, 614-249-6341/


CO: Nationwide Insurance Company ST: Massachusetts IN: INS SU:

KK -- CL006 -- 7724 02/25/93 12:10 EST
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Publication:PR Newswire
Date:Feb 25, 1993
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