Northrop Grumman $21.5M Pension Class Action Settlement, Claim Your Refund and Benefits Insight

If you are a current or former employee of Northrop Grumman who participated in the salaried pension plan, you may be entitled to increased retirement benefits. As of February 2026, the Northrop Grumman $21.5M Pension Class Action Settlement has been reached to resolve allegations regarding miscalculated pension offsets and hidden fees that reportedly reduced retiree payouts.

Northrop Grumman Pension Settlement Overview

The Northrop Grumman $21.5M Pension Class Action Settlement (Case Name: Baleja v. Northrop Grumman Space & Mission Systems Corp.) resolves a long-standing legal battle in the U.S. District Court for the Central District of California. The lawsuit alleged that Northrop Grumman failed to properly disclose how an “ESL offset” (Electronic Systems Laboratory) was applied to pension calculations, resulting in thousands of retirees receiving lower monthly benefits than promised under the Employee Retirement Income Security Act (ERISA).

Following a Ninth Circuit Court of Appeals ruling in 2024 that revived the case, the parties reached a $21.5 million settlement in December 2025. This fund is earmarked to adjust the pension benefits of nearly 6,000 class members. As of February 2026, the settlement is in the “Notice Phase,” with a final fairness hearing scheduled to determine the exact timing of the increased monthly payments and any potential upfront “catch-up” checks.

Claim Eligibility and Class Membership

Class membership is specifically defined by your participation in certain heritage plans. You are likely eligible if:

• Plan Participation: You participated in the Northrop Grumman Space & Mission Systems Corp. Salaried Pension Plan (formerly known as the TRW Salaried Pension Plan).
• Service Window: You received or were entitled to receive pension benefits after December 31, 1984.
• Offset Application: Your pension was subject to the ESL offset, which reduced your TRW benefits based on a prior ESL Retirement Fund account balance.
• Status: You are a living class member or a surviving beneficiary. Note that class members who were deceased and had no living beneficiary as of October 1, 2025, are generally excluded.

Claim Filing Procedures and Deadlines

Unlike many consumer settlements, the Northrop Grumman pension settlement is designed to be user-friendly for retirees.

• No Claim Form Required: For most eligible members, no claim form is necessary. Because this involves internal pension records, the Settlement Administrator and Northrop Grumman will automatically calculate and apply the adjustments to your account.
• Notification Window: If you are a class member, you should have received a “Notice of Proposed Class Action Settlement” by mail in January or February 2026.
• Deadlines for Action: If you wish to object to the settlement or opt out to pursue an individual employment class action, the deadline is March 31, 2026.
• Contact Information: For status updates, you can visit the official portal at www.BalejaNorthropGrummanSpaceSettlement.com or call the administrator at 1-833-647-9049.

Payout Amounts and Calculation Methodology

The $21.5 million fund will be distributed according to a “Points System” approved by the court. Factors affecting your individual payout include:

• Length of Service: Your years of pre-1985 and post-1984 service under the plan.
• Account Value: Your ESL account balance as of January 1, 1985.
• Interest Rates: An 8.5% interest projection through December 31, 2025, used to estimate what your benefit should have been.
• Payment Form: Payouts may arrive as a one-time upfront “catch-up” payment followed by a permanent increase in your monthly pension benefit.

What You Must Know

Critical Settlement Details and Rules

The most important detail for February 2026 is that this settlement focuses on the disclosure of the offset. The plaintiffs argued that Northrop Grumman issued “misleading statements” that made the pension reduction hard to understand. The settlement fund aims to make those retirees “whole” by restoring a portion of the value that was lost due to the allegedly obscure calculation methods.

Common Mistakes to Avoid

While no claim form is required, retirees often make mistakes that delay their funds:

• Outdated Addresses: If you have moved recently, your notice (and subsequent check) might be sent to the wrong address. Update your information via the pension settlement portal immediately.
• Ignoring the Beneficiary Rule: If you are the spouse of a deceased Northrop Grumman retiree, you must ensure the plan has you registered as a “Living Beneficiary” to receive the settlement portion.
• Duplicate Legal Fees: You do not need to hire a separate lawyer; Class Counsel is already being paid from the settlement fund (up to $7 million) to handle the entire class.

2025–2026 Settlement Updates

As of February 10, 2026, the court has officially moved past the trial phase. The 2026 “Take-Action Checklist” for retirees should prioritize verifying their inclusion in the settlement. If you worked for TRW or the Space & Mission Systems division and do not receive a notice by the end of this month, you should proactively contact the administrator to verify your eligibility.

What to Do Next

How to Verify Your Eligibility

1. Check Your Heritage: Confirm you were an employee of TRW or the Northrop Grumman Space & Mission Systems division.
2. Review Old Statements: Look for any mention of an “ESL Offset” on your past annual pension statements.
3. Search the Portal: Use the “Check My Status” tool on www.BalejaNorthropGrummanSpaceSettlement.com using your Social Security number or unique ID from the notice.

How to Monitor Your Payout

Payments are expected to begin approximately 3–4 months after the Final Approval Hearing, which is currently slated for late spring 2026. This means retirees could see increased monthly checks as early as August or September 2026. You can track the final judgment status through the official court docket or the settlement website.

Whether Legal Representation is Needed

The lead attorneys at Kantor & Kantor, LLP and Stember Cohn & Davidson-Welling are managing the case. Most policyholders do not need individual representation. However, if your specific insurance settlement or pension loss exceeds $500,000, you may want to consult an ERISA specialist before the March 31 opt-out deadline.

FAQs

What is the Northrop Grumman $21.5M Pension Class Action Settlement about?

The settlement resolves claims that Northrop Grumman failed to properly disclose and calculate pension offsets for employees of the heritage TRW and ESL divisions, leading to underpaid retirement benefits.

Am I eligible to claim in the Northrop Grumman Pension settlement?

You are eligible if you were a participant in the Space & Mission Systems Salaried Pension Plan after 1984 and your benefits were reduced by an ESL offset.

What is the deadline to file a claim in the Northrop Grumman Pension settlement?

No claim form is required for this settlement. However, the deadline to object or opt out of the settlement is March 31, 2026.

What documentation do I need to file a claim?

No documentation is needed for the automatic payout. However, keeping your old employment records and pension statements is recommended to verify the administrator’s calculations.

How much will I receive from the Northrop Grumman Pension settlement?

Payouts vary based on years of service and the size of your offset, but they will likely consist of an upfront check and a permanent increase in monthly pension payments.

How do I file a claim in the Northrop Grumman Pension settlement?

You do not need to file a claim; eligible participants will be identified automatically through Northrop Grumman’s internal pension records.

Where can I find more information about the Northrop Grumman Pension settlement?

Official documents and case updates are available at www.BalejaNorthropGrummanSpaceSettlement.com.

Last Updated: January 12, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice.

Ensure your retirement benefits are accurate. Check your settlement status today.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah