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Individuals who participated in the Northwell Health 403(b) plan at any time between July 21, 2014, and March 9, 2026, may be eligible to claim a cash payment from from a class action settlement.
Northwell Health Inc. agreed to pay $2.75 million to resolve a class action lawsuit alleging violations of the Employee Retirement Income Security Act in connection with the administration of its 403(b) retirement plan.
Who are the class members?
The class includes all individuals who participated in the Northwell Health 403(b) plan at any time during the class period, which runs from July 21, 2014, through March 9, 2026. This includes any alternate payee of a person subject to a qualified domestic relations order who participated in the plan during the class period.
Within the class, there are several categories:
- Current participants: Individuals with an active account in the plan as of March 9, 2026
- Former participants: Individuals who previously had an account in the plan but do not have an active account as of March 9, 2026
- Beneficiaries: Individuals, trusts or estates entitled to receive death benefits under the plan
- Alternate payees: Individuals entitled to a benefit under the plan as a result of a QDRO
The settlement administrator will determine eligibility based on plan records.
How much is the Northwell Health payout?
The total settlement fund is $2,750,000. The settlement administrator will distribute funds to class members after subtracting court-approved attorneys' fees, litigation expenses, administrative costs, taxes and a case contribution award for the class representative from the gross settlement fund.
The plan of allocation divides the net settlement amount equally between two categories:
- 50% for investments-related claims (investments settlement amount)
- 50% for recordkeeping-related claims (recordkeeping settlement amount)
Each class member's share is based on:
- Their year-end account balances in the Lazard emerging markets fund during the class period (for investments)
- The number of years they had a positive account balance during the class period (for recordkeeping)
Former participants, beneficiaries or alternate payees owed $10 or less will receive a minimum payment of $10.
No action needed to receive payment
Most class members do not need to take any action to receive their payment. The settlement administrator will use plan records to determine eligibility and distribute payments automatically.
However, former participants, beneficiaries or alternate payees who wish to update their address or elect a rollover to another qualified retirement account can do so via the online form or by sending their information to the settlement administrator.
Settlement administrator's mailing address: Northwell Health 403(b) Settlement Administrator, c/o Strategic Claims Services, 600 N Jackson St., Suite 205, Media, PA 19063
Payout options
- Current participants will receive payment credited to their plan account.
- Former participants, beneficiaries, and alternate payees will receive payment by check or rollover (if you elect this option)
$2.75 million settlement fund breakdown
The settlement fund of $2.75 million includes:
- Administrative expenses: Amount not specified
- Attorneys' fees and expenses: Up to $916,666.66
- Case contribution award: Up to $10,000 for the class representative
- Taxes and tax-related costs: Amount not specified
- Payments to eligible class members: Remainder of the net settlement amount
Important dates
- Fairness hearing: July 8, 2026
When is the Northwell Health 403(b) plan settlement payout date?
The settlement administrator will make payments after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Northwell Health Inc. violated ERISA by mismanaging the 403(b) plan.
Northwell Health denied any wrongdoing but agreed to settle to avoid the costs and risks of further litigation.
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