MassMutual Financial Group has agreed to pay $20 million to the state of Oregon over losses in a bond fund in the state’s 529 college-savings plan, The Wall Street Journal reports. In April, Oregon had sued the firm for losses of $36 million incurred by participants in Mass Mutual’s OppenheimerFunds Core Bond Fund.

The bond fund had made risky bets in commercial mortgage-backed securities, losing 36% of its value in 2008. OppenheimerFunds tried to make amends by replacing its fixed-income team and taking other steps to reduce the risk in its portfolios. TIAA-CREF will replace OppenheimerFunds as manager of the Oregon College Savings plan.

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