There are just a few weeks left to claim a share of the massive $124 million 401(K) settlement – here’s everything you need to know
- Administrators of a 401(K) plan will pay more than $124.6 million to settle claims that they mismanaged an employee profit-sharing plan
- The settlement resolves disputes brought by the U.S. Department of Labor and private plaintiffs
- The lawsuit alleges that participants suffered losses on their retirement savings when the plan overinvested in a single pharmaceutical stock
The deadline is quickly approaching for eligible Americans to apply for a $124 million retirement plan.
Administrators of a 401(K) plan sponsored by service provider DST Systems – including New York City-based investment management firm Ruane, Cunniff & Goldfarb – will pay more than $124.6 million to settle claims that they mismanaged an employee profit-sharing plan managed.
The settlement resolves lawsuits from the U.S. Department of Labor and private plaintiffs alleging that the companies failed to diversify the plan’s assets to minimize the risk of large losses.
The lawsuit alleges that the consulting firms overinvested in a single pharmaceutical stock — Valeant Pharmaceuticals — which grew to more than 45 percent of the plan’s assets, according to the Ministry of Labor.
Then the price dropped dramatically – and as a result, plan participants suffered significant losses on their retirement savings.
Administrators of a 401(K) plan sponsored by service provider DST Systems will pay more than $124.6 million to settle claims that they mismanaged an employee profit-sharing plan
Neither DST Systems, which was acquired by SS&C Technologies in 2018, nor Ruane, Cunniff & Goldfarb admitted any wrongdoing.
According to the Department of Labor, there are approximately 9,000 participants who are owed a portion of the settlement.
The exact amount each participant receives depends on their current status.
Current participants will have their share deposited directly into their account, while former participants will receive a check in the mail.
Neither needs to submit a request for a refund.
According to the Department of Labor, there are approximately 9,000 participants who are owed a portion of the settlement
But anyone who participated in the plan between March 14, 2010 and July 31, 2016 and wants to transfer the money to another qualified retirement account must file a claim by October 12.
The option to submit this form applies to anyone who maintained a positive balance in the scheme at any time during that period, but did not have an account with a positive balance as of August 3, 2023.
“This settlement restores the hard-earned pension funds of more than 9,000 DST Systems pension plan participants.
“The U.S. Department of Labor is committed to investigating and seeking remedies for potential violations of the Employee Retirement Income Security Act,” Lisa M. Gomez, assistant secretary for Employee Benefits Security, said in July.
