Lehigh Valley Health Network $1.15M ERISA Settlement, What Plan Participants Must Know Before the February 2026 Deadline
Lehigh Valley Health Network has agreed to pay $1.15 million to settle a class action lawsuit alleging the healthcare system mismanaged its 403(b) retirement plan through excessive fees and misused forfeited funds. The settlement covers approximately 26,430 plan participants from October 21, 2018, through November 19, 2025, with an objection deadline of February 24, 2026.
Understanding the ERISA Violations Alleged
The lawsuit, filed in October 2024 in the U.S. District Court for the Eastern District of Pennsylvania, accused Lehigh Valley Health Network and its board of directors of breaching fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA is the federal law that protects retirement plan participants by requiring plan administrators to act in the best interest of employees and manage plan assets prudently.
The complaint focused on two primary violations. First, participants alleged the health network failed to properly monitor and control recordkeeping administrative fees. Second, they claimed Lehigh Valley misused forfeited employer contributions—funds that employees lose when leaving before becoming fully vested in the plan.
Excessive Recordkeeping Fees
Plan participants reported paying as much as $115 per year in recordkeeping fees, significantly higher than comparable plans where participants paid only $22 to $30 annually. The lawsuit alleged that Lehigh Valley failed to seek competitive bids from other providers or properly negotiate fees despite the plan’s large size.
Under ERISA’s fiduciary duty requirements in 29 U.S.C. § 1104, plan administrators must ensure that fees charged to participants are reasonable and in line with industry standards for similar-sized plans.
Misuse of Forfeited Funds
The second allegation centered on how Lehigh Valley handled forfeited funds. When employees leave before becoming fully vested, they forfeit their employer-matched contributions. According to the lawsuit, since 2018 the health network allegedly used approximately $400,000 in these forfeited funds to offset its own future matching contributions rather than using them to reduce administrative expenses for current plan participants.
This practice allegedly violated ERISA because it benefited the employer at the expense of plan participants who continued bearing higher administrative costs.
Who Is Eligible for the Settlement
Class members who qualify for payment from this settlement must meet specific criteria based on their participation in the Lehigh Valley Health Network 403(b) Savings Plan.
Primary Eligibility Requirements
You are eligible if you participated in the LVHN 403(b) Savings Plan at any time between October 21, 2018, and November 19, 2025. This seven-year period is known as the “class period” and determines who can receive settlement funds.
Beneficiaries of deceased plan participants who were in the plan during this period also qualify. Additionally, alternate payees subject to a qualified domestic relations order (QDRO) who participated during the class period are eligible.
The defendants in the case and their beneficiaries are excluded from the settlement class.
Automatic Identification Process
The settlement administrator will use plan records to automatically identify eligible class members. You do not need to prove your participation—if you were in the plan during the class period, the administrator already has your information.
If you believe you participated in the plan during the covered dates but have not received notice, contact the settlement administrator at [email protected] or call 1-866-742-4955.
Settlement Distribution and Payment Amounts
The total settlement fund is $1,150,000, but not all of this goes directly to class members due to court-approved deductions.
How the Fund Is Allocated
Approximately $380,000 (about one-third of the total) will pay attorney fees for the lawyers who prosecuted the case. An additional $75,000 covers litigation costs incurred during the lawsuit. Each of the five named class representatives who filed the suit will receive $5,000 service awards for their role in bringing the case forward.
The settlement administrator will also deduct administrative costs for processing claims, distributing payments, and managing the settlement.
After these deductions, the remaining net settlement amount will be distributed to eligible class members on a pro rata basis.
Calculating Individual Payments
Your individual payment depends on your account balance during the class period and the total number of eligible participants. The settlement administrator will total each class member’s quarterly account balances throughout the class period from October 21, 2018, through November 19, 2025.
Class members with larger account balances during this period will receive proportionally larger payments. Because the exact number of eligible participants and final administrative costs are not yet determined, specific individual payment amounts cannot be calculated until after the court grants final approval.
According to settlement documents, this settlement represents approximately 11% of the workers’ estimated total damages on all claims and more than 61% of damages specifically related to excessive recordkeeping fees and mishandled forfeitures.
Critical February 2026 Deadline
The objection deadline for this settlement is February 24, 2026. This is the final date by which class members can formally object to the settlement terms or request exclusion.
Automatic Payments After Final Approval
Unlike many class action settlements that require claim forms, this ERISA settlement will distribute payments automatically to eligible class members after the court grants final approval and resolves any appeals. The settlement administrator will use plan records to identify recipients and issue payments directly.
You do not need to file a claim form to receive your settlement payment if you participated in the plan during the class period. However, you should ensure the settlement administrator has your current mailing address.
Court Approval Process
The court must still grant final approval before any payments are issued. If class members file objections by February 24, 2026, the court will review them before making a final determination about whether the settlement is fair, reasonable, and adequate.
Once final approval is granted and any appeals are resolved, the settlement administrator will begin processing payments.
What You Must Know Before This Settlement Is Finalized
Understanding these hidden details can help you make informed decisions about your rights under this settlement.
Common Mistakes Plan Participants Make
The biggest mistake is assuming you’re not eligible without checking. Many former Lehigh Valley employees who participated in the 403(b) plan during the class period may not realize they qualify for payment, especially if they left the organization years ago.
Another common error is failing to update your mailing address with the settlement administrator. If you’ve moved since leaving Lehigh Valley, your payment could be returned as undeliverable.
Class members sometimes confuse this ERISA settlement with the separate $65 million data breach settlement that Lehigh Valley Health Network reached in 2024. These are two completely different cases with different eligibility requirements and deadlines.
How This Reflects 2025–2026 ERISA Enforcement Trends
This settlement is part of a broader wave of ERISA litigation targeting healthcare systems and large employers over retirement plan fees. In 2024 and 2025, federal courts have seen increased scrutiny of 403(b) and 401(k) plan administrators who fail to negotiate competitive recordkeeping fees despite managing plans with substantial assets.
The Department of Labor has emphasized that fiduciaries must regularly review plan fees and ensure they remain reasonable as plan size grows. Larger plans typically have greater bargaining power to negotiate lower per-participant fees, and failure to leverage that power can constitute a breach of fiduciary duty under ERISA.
Potential Tax Implications
Settlement payments from ERISA retirement plan cases may have tax consequences. These payments are typically considered taxable income, though the specific treatment depends on how the funds are distributed.
Consult with a tax professional about whether your settlement payment should be reported as ordinary income and how it might affect your tax liability for 2026. The settlement administrator may issue tax forms documenting your payment.
What to Do Next
Taking these steps ensures you protect your rights under this settlement.
Step 1: Verify Your Eligibility and Contact Information
Confirm that you participated in the Lehigh Valley Health Network 403(b) Savings Plan between October 21, 2018, and November 19, 2025. If you received notice of the settlement, your eligibility has already been confirmed through plan records.
Update your mailing address with the settlement administrator if you’ve moved since your employment with Lehigh Valley ended. Contact RG/2 Claims Administration LLC at:
Kiskeravage, et al. v. Lehigh Valley Health Network Inc., et al.
c/o RG/2 Claims Administration LLC
P.O. Box 59479
Philadelphia, PA 19102-9479
Phone: 1-866-742-4955
Email: [email protected]
Step 2: Review the Settlement Agreement
The complete Settlement Agreement is available on the official settlement website at https://www.lvhnerisasettlement.com/. Review the terms to understand your rights, including your option to object or exclude yourself from the settlement by February 24, 2026.
If you object to the settlement or wish to exclude yourself, you must follow the specific procedures outlined in the notice and submit your written objection or exclusion request by the deadline.
Step 3: Consider Whether Legal Advice Is Needed
For most class members, no action is required beyond ensuring the settlement administrator has current contact information. Payments will be issued automatically after final court approval.
However, you may want to consult an attorney if you have complex questions about your eligibility, if you’re considering objecting to the settlement, or if you believe you should receive a larger share based on your account balances during the class period.
The settlement website provides contact information for class counsel who can answer general questions about the settlement. For individual legal advice specific to your situation, contact a qualified ERISA attorney.
Frequently Asked Questions
Am I eligible for the Lehigh Valley Health Network ERISA settlement?
You are eligible if you participated in the LVHN 403(b) Savings Plan at any time between October 21, 2018, and November 19, 2025. Beneficiaries of deceased participants and alternate payees under qualified domestic relations orders are also eligible. The settlement administrator will automatically identify eligible class members using plan records.
How much will I receive from the settlement?
Individual payment amounts depend on your account balances during the class period and the total number of eligible participants. After deductions for attorney fees ($380,000), litigation costs ($75,000), service awards ($25,000 total), and administrative expenses, the remaining settlement funds will be distributed pro rata based on quarterly account balances during the seven-year class period.
What is the deadline to file a claim?
No claim form is required. Eligible class members will automatically receive payments after the court grants final approval and resolves any appeals. However, if you wish to object to the settlement or exclude yourself, you must do so by February 24, 2026.
What documents do I need to submit?
No documentation is needed. The settlement administrator will use existing plan records to identify eligible class members and calculate payment amounts based on your historical account balances during the class period from October 2018 through November 2025.
What was the ERISA violation in this case?
The lawsuit alleged Lehigh Valley Health Network breached its fiduciary duties under ERISA by failing to properly control recordkeeping fees (participants paid up to $115 annually versus $22-$30 at comparable plans) and by misusing approximately $400,000 in forfeited funds to offset the employer’s future contributions instead of reducing participant costs. The defendants denied wrongdoing but settled to avoid litigation costs and uncertainty.
Will I have to pay taxes on my settlement payment?
Settlement payments from ERISA cases are generally taxable income. The specific tax treatment depends on how the funds are distributed and your individual tax situation. Consult a tax professional for advice specific to your circumstances, and watch for any tax reporting forms the settlement administrator may issue.
What happens if I miss the February 24, 2026 deadline?
The February 24, 2026 deadline applies only to objections and requests to exclude yourself from the settlement. If you take no action, you will automatically remain in the settlement class and receive your payment after final court approval. You cannot opt out or object after the deadline passes.
Last Updated: January 15, 2026
Disclaimer: This article is informational only and not legal advice. For specific questions about your eligibility or rights under this settlement, contact the settlement administrator or consult with a qualified ERISA attorney.
Are you a Lehigh Valley Health Network plan participant? Visit https://www.lvhnerisasettlement.com/ to review the complete settlement agreement and verify your eligibility. If you participated in the LVHN 403(b) Savings Plan between October 2018 and November 2025, you may be entitled to a settlement payment.
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.
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