American Airlines 401(k) Settlement – LAA
LAA employees started receiving notices this past week about their possible inclusion in a Class Action Lawsuit that was brought about by three AA employees last year over 401(k) investment options. The parties have reached a potential settlement and any LAA employee who had an active 401(k) plan that had investments in the American Beacon family of funds or Non-American Beacon Mutual funds from April 15, 2010 to October 30,2015 is a potential member of this Class Action Lawsuit.
Participants in this lawsuit are defined as either a Current Participant or a Former Participant, and the notice you receive in the mail will indicate which group you are in. Current participants had an active 401(k) account on July 7, 2017. Former Participants did not have an active 401(k) account on July 7, 2017.
Current Participants are not required to take any action. If and when the settlement is approved by the court, any settlement monies the participant is entitled to will be deposited into the active 401(k) account.
Former Participants will need to complete the Former Participant Claim Form that came with their notice and indicate how they want any settlement monies paid out: either in a check (subject to mandatory federal and applicable state withholding tax) or a distribution into an eligible retirement plan such as an IRA. The Former Participant Claim Form must be postmarked by February 12, 2018.
A Fairness Hearing is scheduled for February 21, 2018. If the court approves the settlement, the Claim Administrator will begin calculating payment amounts expected to be paid out later in the year. Each participant’s potential settlement amount will be based on how their accounts were invested in the Disputed Investments during the designated timeframe.
Please visit the Claim Administrator’s website http://aasupersaver401ksettlement.com for more information, including FAQ’s and relative case documents.
APFA National Retirement Specialist