Colgate-Palmolive $332M Pension Plan Class Action Settlement

Retirees who received a lump sum pension payment from the Colgate-Palmolive Co. employee retirement income plan may be eligible to claim a significant cash payment from a class action settlement.

Colgate-Palmolive Co. agreed to pay $332 million to resolve a class action lawsuit alleging it and its retirement plan failed to pay certain participants the full value of their pension benefits as required by a 2005 plan amendment and federal pension law.

Who are the class members?

The class includes:

• Those identified in Attachment A to the settlement agreement, which reflects the parties’ best efforts to identify everyone who, as of Aug. 1, 2025, meets the class definition
• Those who, under appendices B, C or D of the plan, received a lump sum payment from the Colgate-Palmolive Co. employee retirement income plan and are entitled to a greater benefit than their accrued benefit members
• The beneficiaries and estates of any such person

There are several categories of class members:

• Participant class members: Individuals who received a lump sum payment and are entitled to a greater benefit under the plan
• Spouse class members: Spouses (as of the original payment date) of participant class members who may be entitled to survivor benefits
• Successors/estates: If a participant or spouse class member is deceased, their estate or successor (as defined in the settlement agreement) who may be entitled to a one-time payment

How much can class members receive?

Class members are eligible for two types of awards:

• An immediate lump sum payment to make up for missed prior annuity payments
• Future annuity payments provided the class member (or their spouse at the time of the original payment) is alive as of Aug. 1, 2025

The settlement administrator will calculate the exact amount each class member receives as follows:

1. The settlement administrator will calculate what the plan should have paid as an annuity retroactive to the original lump sum payment date. This includes adjustments for any prior annuity payments received and any retroactive annuity payment received around 2014.
2. It will then the total forward with interest at 5% per year.
3. It will then reduce the amount by a pro rata discount to account for attorneys’ fees, settlement administration costs and any service award to the class representative.

• Participant class members: Receive a one-time lump sum for missed payments and a monthly annuity for life
• Spouse class members: Receive a survivor annuity after the participant’s death for the rest of the spouse’s life
• Successors/estates: Receive a one-time payment to make up for missed annuity payments prior to the participant’s or spouse’s death

No class member will receive less than $1,000 in total net settlement benefits.

No action needed to receive payment

Class members do not need to file a claim to receive compensation. The settlement administrator already has the necessary information for each class member.

Class members whose addresses have changed or who are the successors of deceased class members should complete and return the personal information form or successor information form provided with their notice to ensure the settlement administrator sends payment to the correct address or payee.

Settlement administrator’s contact information: McCutcheon v. Colgate Settlement, c/o Notice Administrator, P.O. Box 16, West Point, PA 19486, colgate@classinfosource.com, 833-215-9289

Payout options (how class members can get paid)

• Physical check
• Electronic payment (if currently receiving annuity payments electronically from the plan)

$332 million settlement fund breakdown

The $332,000,000 settlement fund includes:

• Settlement administration costs: Up to $150,000
• Attorneys’ fees: Up to $96,280,000
• Attorneys’ expenses: Up to $2,900,000
• Service award to class representative: Up to $10,000
• Payments to eligible class members: Estimated at $232,700,000

Important dates

• Fairness hearing: Jan. 12, 2026

When is the Colgate-Palmolive pension settlement payout date?

The settlement administrator will issue payments to class members approximately 90 days after the settlement receives final approval and becomes effective provided there are no appeals or delays.

Why is there a class action settlement?

The class action lawsuit alleged Colgate-Palmolive Co. and the plan failed to pay certain participants the full value of their pension benefits as required by a 2005 plan amendment and federal pension law (ERISA). The amendment, known as the residual annuity amendment, was intended to provide an additional annuity benefit to participants who received a lump sum after July 1, 1989, but did not receive the full value of their plan benefit. The plaintiffs claimed the plan underpaid or failed to pay these residual annuities.

The defendants denied any wrongdoing but agreed to settle to avoid further litigation and provide prompt relief to class members.

Sources

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