Sutter Health $4.3M ERISA Class Action Settlement

Individuals who participated in the Sutter Health 403(b) savings plan at any time between July 21, 2014, and Oct. 9, 2025, may be eligible to claim a cash payment from a class action settlement.

Sutter Health agreed to pay $4.3 million to resolve a class action lawsuit alleging it violated the Employee Retirement Income Security Act in its management of the Sutter Health 403(b) savings plan.

Who are the class members?

Class members are:

• All individuals who participated in the Sutter Health 403(b) savings plan at any time from July 21, 2014, through Oct. 9. 2025
• Any beneficiary of a deceased person who participated in the plan during this period
• Any alternate payee (such as a spouse or former spouse) of a person subject to a qualified domestic relations order who participated in the plan during the class period

There are two primary categories of class members:

• Current participants and beneficiaries/alternate payees with active accounts: These are individuals who had an active account (with a balance greater than $0) in the plan as of Oct. 9, 2025.
• Former participants and beneficiaries/alternate payees without active accounts: These are individuals who no longer had an active account as of Oct. 9, 2025.

How much can class members get?

The total settlement fund is $4,300,000. The amount each class member can receive depends on several factors, including their account balance, the funds they invested in and the length of time they participated in the plan during the class period. After deducting attorneys' fees, administrative costs and service awards, the settlement administrator will distribute the remaining amount to eligible class members.

The net settlement amount is divided as follows:

• 75% is allocated to compensate for losses in certain investment funds (the "investments settlement amount")
• 25% is allocated to compensate for excessive recordkeeping fees (the "recordkeeping fees settlement amount")

The minimum payment for former participants is $10.

How to claim a class action rebate

Current participants and beneficiaries/alternate payees with active accounts do not need to take any action. They will automatically receive payment deposited into their plan account.

Former participants and beneficiaries/alternate payees without active accounts must submit a claim form to receive their payment. They can download, print, complete and mail the PDF claim form to the settlement administrator.

Settlement administrator's contact information: Sutter Health 403(b) Settlement Administrator, c/o Strategic Claims Services, 600 N Jackson St., #205, Media, PA 19063, info@strategicclaims.net, 866-274-4004.

What proof or documentation is required to submit a claim?

• Current participants and those with active accounts do not need to submit a claim.
• Former participants and those without active accounts must provide their Social Security number.
• Beneficiaries of deceased class members, including executors, heirs, assigns, estates, personal representatives or successors-in-interest, must provide:
• Death certificate
• Names and, if applicable, the percentage of distribution each person is entitled to receive
• Social Security numbers of each person entitled to receive payment
• Current mailing addresses of each person entitled to receive payment

Payout options

• Current participants and beneficiaries/alternate payees with active accounts will receive payment credited directly to their plan account.
• Former participants and beneficiaries/alternate payees without active accounts can:
• Receive a check mailed to their address
• Elect a rollover payment to an IRA or eligible employer plan (if eligible)

$4.3 million settlement fund breakdown

The $4,300,000 settlement fund covers:

• Administrative expenses: To be determined
• Attorneys' fees: Up to $1,433,333.33
• Attorneys' expenses: To be determined
• Service awards to class representatives: Up to $12,500 each
• Independent fiduciary fees and expenses: Up to $20,000
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: Feb. 5, 2026
• Objection deadline: March 9, 2026
• Final approval (fairness) hearing: April 10, 2026

When is the Sutter Health ERISA litigation payout date?

The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval to the settlement.

Why is there a class action settlement?

The class action lawsuit alleged that Sutter Health violated ERISA by failing to properly manage the 403(b) plan, resulting in excessive fees and poor investment performance.

Sutter Health denied any wrongdoing but agreed to settle to avoid the expense, risk and uncertainty of further litigation.

Sources

1. Claim form
2. Settlement notice
3. Settlement agreement
4. Preliminary approval order