Northrop Grumman $21.5M Pension Class Action Settlement

Individuals who received pension benefits under the Northrop Grumman Space & Mission Systems Corp. salaried pension plan, formerly the TRW salaried pension plan, after Dec. 31, 1984, and those benefits were subject to the ESL offset, may be eligible to received additional pension benefits from a $21.5 million award from a class action settlement.

Northrop Grumman Corp. has agreed to pay $21,500,000 to settle a class action lawsuit for alleged violations related to the calculation and disclosure of pension benefits, specifically concerning the application of the ESL offset and the payment of minimum benefits under the plan.

Who are the class members?

• Class members are all individuals whose pension benefits under the Northrop Grumman Space & Mission Systems Corp. salaried pension plan, after Dec. 31, 1984, are subject to the ESL offset.
• The class includes both current and former participants and beneficiaries whose benefits were reduced by the ESL offset after Dec. 31, 1984.

Who is excluded from the class?

Class members who were deceased and had no living beneficiary as of Oct. 1, 2025, are not eligible to receive a settlement payment.

How much will the settlement payments be?

• Additional pension benefits: Class members will receive additional pension benefits, calculated individually using a points-based system based upon certain factors that include:
• The class member’s ESL account balance as of Dec. 31, 1984
• Length of pre-1985 and post-1984 service
• Interest projection period
• Whether the class member received any benefit from the plan other than their ESL account balance

• Payments may be made as an upfront payment and/or as increased monthly pension benefits, depending on the plan amendment.
• Each class member’s award is capped at the value of their ESL account balance as of Jan. 1, 1985, projected at 8.5% interest through Dec. 31, 2025.

No claim form required

Class members do not need to file a claim to receive their additional pension benefits.

$21.5 million settlement fund breakdown

The $21,500,000 settlement fund will include:

• Attorneys' fees: Up to $6,450,000
• Attorneys' expenses and settlement administration costs: Up to $500,000
• Service awards to class representatives: $25,000 each
• Payments to class members: Remaining settlement funds

Important dates

• Final approval hearing: May 4, 2026

When is the Northrop Grumman payout date?

Increased pension payments to class members will occur approximately 3-4 months after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged that Northrop Grumman and related defendants failed to properly disclose the ESL offset and did not pay certain minimum pension benefits as required under the plan and ERISA. Plaintiffs claimed this resulted in class members receiving less than they were entitled to.

The defendants denied the allegations but agreed to settle to avoid the expense and uncertainty of further litigation and a possible trial.

Sources

1. Class notice
2. Official settlement website
3. Settlement agreement