Sun Country $1.55M Military Leave 401(k) Settlement

Sun Country Airlines pilots who took military leave between July 21, 2011, and Dec. 31, 2025, or individuals who are a beneficiaries of such a pilot may be eligible to claim a cash payment from a class action settlement.

Sun Country Inc. agreed to pay $1.55 million to resolve a class action lawsuit alleging it failed to make required 401(k) contributions for pilots during their military leave as mandated by the Uniformed Services Employment and Reemployment Rights Act. The lawsuit also claimed that the fiduciaries of the Sun Country 401(k) profit-sharing plan violated their duties under the Employee Retirement Income Security Act by not ensuring Sun Country made these contributions.

Who are the class members?

The class includes individuals who meet all of the following criteria:

• They are current or former pilots of Sun Country Inc. who participated in the Sun Country Inc. 401(k) profit-sharing plan.
• They are pilots who, after becoming Sun Country employees, completed a period of qualified military service between July 21, 2011, and Dec. 31, 2025.
• They are pilots who returned from military leave to be reemployed at Sun Country.
• They are pilots who did not receive a pension contribution to the plan for such military service at the required rate, which is either:
• The rate the employee would have received but for the period of military service if that rate was reasonably certain or
• If not reasonably certain, the average rate of compensation during the 12 months immediately preceding the military leave (or, if shorter, the period of employment immediately preceding the leave)

• They are beneficiaries of the above participants.

The class includes approximately 131 current or former Sun Country pilots plus their beneficiaries. Those who received a notice by mail or email without requesting it are likely included in the class.

How much can class members get?

The total settlement fund is $1,550,000. The settlement administrator will deduct costs for attorneys’ fees and expenses, administrative costs and service awards to class representatives before distributing the fund.

The amount each class member receives is based on the amount of 401(k) contributions Sun Country should have made for each participant for periods of qualified military leave during the class period plus lost earning and minus any contributions that Sun Country actually made.

No action needed to receive compensation

Class members whom the settlement administrator already identified do not need to file a claim to receive payment. The administrator will automatically make payments using the information Sun Country has on file. Those who need to update their address should contact the settlement administrator.

Class members who wish to challenge the data used to calculate their payment (such as military leave dates or pay rates) may submit a detailed statement and documentation to the settlement administrator by Nov. 6, 2026.

Settlement administrator’s mailing address: Sun Country USERRA Settlement Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19130

Payout options

• For class members with a current account in the plan, the settlement administrator will issue payment through the plan unless the amount exceeds IRS limits. In this case, the administrator will pay the excess by check or electronic funds transfer, which may be subject to tax withholding.
• For class members without a current account in the plan, the settlement administrator will issue payment by check or electronic funds transfer, which may be subject to tax withholding.
• For beneficiaries, only those entitled to an immediate payment under the plan or ERISA (such as alternate payees under a qualified domestic relations order or beneficiaries of deceased pilots) will receive payment. If there are multiple beneficiaries for a single account, the settlement administrator will divide payment according to the plan or, if not addressed in the plan, based on their respective interests.
• For those with a current plan account, Sun Country will credit payment to their 401(k) account unless IRS limits apply, in which case the settlement administrator will pay the excess by check or electronic funds transfer.
• For those without a plan account, the settlement administrator will issue payment by check or electronic funds transfer.

Payments may be subject to tax withholding and reporting.

$1.55 million settlement fund breakdown

The $1,550,000 settlement fund includes:

• Attorneys’ fees: Up to $516,666.67)
• Attorneys’ expenses: To be determined
• Service awards to class representatives: $35,000 total
• Payments to eligible class members: Remainder of the fund

Sun Country will pay settlement administration costs separately.

Important dates

• Deadline to challenge data: Nov. 6, 2026
• Final approval (fairness) hearing: Nov. 17, 2026

When is the Sun Country military leave 401(k) settlement payout date?

The settlement administrator will distribute 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 Sun Country failed to provide required 401(k) contributions for pilots during periods of military leave as required by USERRA and the terms of the 401(k) plan. The plaintiffs also claimed the plan’s fiduciaries breached their duties under ERISA by not ensuring the company made these contributions.

Sun Country denies any wrongdoing but agreed to settle to avoid the expense and uncertainty of further litigation and provide compensation to affected pilots.

Sources

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