The Beacon and Andover funds will get about $99 million in the settlement from their former outside investment adviser Ivy, attorney Arthur Jakoby said. That includes some union pension holdings, he said.
Internal Ivy documents showed the firm had deep but undisclosed reservations about Madoff, authorities said. Its clients lost more than $236 million after Madoff's Ponzi scheme collapsed.
In 2010, then New York Attorney General Andrew Cuomo filed a civil complaint, alleging fraudulent conduct by Ivy in connection with securities sales and breach of fiduciary duty.
Ivy said then that its advisers raised questions about Madoff with clients and urged them to reduce their positions.
Authorities have said Madoff's Ponzi scheme cost investors an estimated $17.3 billion. He pleaded guilty in 2009 and is serving a 150-year prison sentence in Butner, N.C.
Irving Picard, the trustee in charge of liquidating Madoff's assets, estimated this summer he had recovered $9.1 billion, but had not yet distributed most of that.