Liberty Mutual $13.4 Million 401(k) Plan ERISA Settlement

Individuals who participated in the Liberty Mutual 401(k) plan between April 10, 2014, and Dec. 31, 2025, may be eligible to claim a cash payment from a class action settlement.

Liberty Mutual Group Inc. agreed to pay $13,400,000 to settle a class action lawsuit alleging it and its 401(k) plan administrative committee violated the Employee Retirement Income Security Act. The lawsuit claimed Liberty Mutual allowed the plan to pay excessive fees for recordkeeping and administrative services and retained imprudent investment options.

Who are the class members?

Class members include all participants and beneficiaries of the Liberty Mutual 401(k) plan from April 10, 2014, through Dec. 31, 2025, excluding the defendants.

This includes:

• Anyone who had an account balance in the plan at any time during this period
• Both current and former employees who participated in the plan
• Beneficiaries and alternate payees entitled to a benefit under the plan

The settlement divides class members into two main categories:

• Current participants: Individuals who had an account balance in the plan as of Dec. 31, 2025. These class members do not need to file a claim to receive payment.
• Former participants: Individuals who did not have an account balance in the plan as of Dec. 31, 2025. These class members must submit a claim form to receive payment.

How much can class members get?

The total settlement fund is $13,400,000. Th settlement administrator will deduct attorneys' fees and costs, administrative expenses, taxes, and service awards to class representatives from this amount before distributing it to eligible class members.

The court-approved plan of allocation divides the fund into four portions:

• Sterling Mid-Cap Value Fund portion (35%): Allocated to those who invested in this fund between April 10, 2014, and March 1, 2018
• Recordkeeping fee portion (27.5%): Distributed among all class members based on their quarter-ending account balances from April 10, 2014, through Dec. 31, 2025
• Managed account portion (27.5%): Allocated to those who used the plan's managed account services during the class period
• Wells Fargo U.S. Government Money Market Fund portion (10%): Allocated to those who invested in this fund between April 10, 2014, and May 31, 2021

Each class member's share will depend on their account balances and investments in the specified funds and services during the class period. The minimum payment is $10. If a class member's calculated share is less than $10, the settlement administrator will increase their payment to $10.

How to claim a settlement payment

Current participants who had an account balance as of Dec. 31, 2025, do not need to take any action. The settlement administrator will automatically deposit their payment into their existing plan account.

Former participants who had no balance as of Dec. 31, 2025, must submit a claim form to receive their payment. They can file a claim online or download the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Liberty Mutual ERISA Settlement, P.O. Box 2010, Chanhassen, MN 55317-2010

Required information

To file an online claim, class members must enter the claim number and PIN from the settlement notice they received.

Payout options

• Current participants: Payment credited to their plan account
• Former participants: Payment by check mailed to their address or sent as a rollover to a qualified retirement account

$13.4 million settlement fund breakdown

The settlement fund of $13,400,000 will cover:

• Administrative expenses: To be determined
• Attorneys' fees: Up to $4,466,666.67
• Attorneys' expenses: Up to $430,000
• Service awards to class representatives: Up to $20,000 each for six representatives (maximum $120,000)
• Payments to eligible class members: Remainder of the fund

Important dates

• Claim form deadline: Aug. 22, 2026
• Final fairness hearing: Sept. 2, 2026

When is the Liberty Mutual 401(k) plan ERISA settlement payout date?

The settlement administrator will distribute payments within 150 days after the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The lawsuit alleged Liberty Mutual Group Inc. and the 401(k) plan administrative committee violated ERISA by allowing the plan to pay excessive fees for recordkeeping and administrative services and retaining imprudent investment options.

Liberty Mutual denied all allegations and any liability but agreed to settle to avoid the costs and risks of continued litigation.

Sources

1. Claim form
2. Settlement agreement
3. Settlement FAQ
4. Important dates