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Participants in, beneficiaries of and alternate payees of the Providence Health & Services 401(k) savings plan at any time from Jan. 1, 2018, through June 4, 2026, may be eligible to receive a cash payment from a class action settlement.
Providence Health & Services agreed to pay $42,724,532 to resolve a class action lawsuit alleging violations of the Employee Retirement Income Security Act. The lawsuit claimed Providence and its total rewards management committee mismanaged the 401(k) Savings Plan.
Who are the class members?
Class members must meet one of the following criteria:
- They are a current or former plan participant.
- They participated in the Providence Health & Services 401(k) Savings Plan at any time from Jan. 1, 2018, through June 4, 2026.
- They were a beneficiary of the plan during that period.
- They are an alternate payee entitled to a plan benefit as a result of a qualified domestic relations order during the same timeframe.
How much are settlement payments?
Pro rata cash payment: Eligible class members will receive a pro rata cash payment from the net settlement fund. The estimated average payment per class member is approximately $106, but the actual amount may vary depending on the number of eligible class members and final deductions for fees and expenses.
No action needed to receive compensation
Eligible class members do not need to file a claim to receive their share of the settlement. The settlement administrator and plan recordkeeper already have the necessary information to identify eligible class members and allocate payments.
The settlement administrator will automatically distribute the allocated amount to each eligible class member’s plan account. The accounts of former participants will be reactivated at Providence's expense so class members can receive the payment.
Payout options
- Current participants: Providence Health & Services will deposit payment into current participants' plan accounts and invest it in the Vanguard Fiduciary Trust Co. Target Retirement Income Trust.
- Former participants: Providence Health & Services will reactivate former particpants' accounts so they can receive the payment. They may request a distribution or will be subject to automatic distribution if the balance is $1,000 or less.
Those whose mailing address has changed should contact the settlement administrator to update their information.
Settlement administrator's address: Analytics Consulting LLC, 2026 Providence 401(k) Settlement, P.O. Box 2009, Chanhassen, MN 55317-2009
Settlement administrator's email address: 2026providence401ksettlement@noticeadministrator.com
$42.72 million settlement fund breakdown
The $42,724,532 settlement fund will include:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $5,867,000
- Attorneys’ expenses: Up to $23,000
- Service award to class representative: Up to $5,000
- Payments to eligible class members: The remaining funds
Important dates
- Fairness hearing: Oct. 20, 2026
When is the Providence Health & Services 401(k) settlement payout date?
The settlement administrator will distribute payments will after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The lawsuit alleged Providence Health & Services and its total rewards management committee breached their fiduciary duties and engaged in prohibited transactions under ERISA in the management of the 401(k) savings plan. The plaintiffs claimed the defendants' handing of funds and plan expenses harmed plan participants.
Providence denies all allegations and liability but agreed to settle to avoid the costs and risks of continued litigation.
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