$2.75M Northwell Health Retirement Plan Settlement, Did They Shortchange Your 401(k)? 

If you worked at Northwell Health and contributed to its 403(b) retirement plan anytime since July 2014, you may be owed money — and in most cases, you don’t even need to file a claim to get it.

A former Northwell employee sued the New York-based health system in 2020, alleging it mismanaged the retirement plan for over 50,000 workers. Northwell Health agreed to pay $2.75 million to settle the claims, which are now pending preliminary approval before U.S. District Judge Taryn A. Merkl in the Eastern District of New York.

Field	Detail
Settlement Amount	$2,750,000
Claim Deadline	No claim filing required for most members
Who Qualifies	Northwell Health 403(b) plan participants, July 21, 2014 – March 9, 2026
Payout Per Person	$10 minimum; actual amount determined pro rata
Proof Required	No
Settlement Status	Preliminarily Approved
Administrator	Strategic Claims Services
Official Website	strategicclaims.net/case/northwell403b

Where things stand right now:

• The settlement is preliminarily approved and awaiting a final fairness hearing scheduled for July 8, 2026.
• No opt-out or objection deadlines have been publicly specified — check the official settlement website for updates.
• Payments will go out after the court grants final approval and resolves any appeals.

What Northwell Was Accused of Doing to Workers’ Retirement Savings

Kaila Gonzalez, a participant in the Northwell Health 403(b) plan, filed suit in 2020 against Northwell Health, Inc., the Northwell Health 403(b) Plan Committee, and 10 other unidentified plan fiduciaries. She alleged the plan was being mismanaged in two specific ways.

First, the lawsuit claimed Northwell failed to use the plan’s large size to negotiate better deals on administrative fees. Second, it alleged the plan offered workers expensive investment funds that consistently underperformed their benchmarks.

Both allegations fall under ERISA — the federal law that requires employers managing retirement plans to act in workers’ best financial interests. Northwell Health denied any wrongdoing but agreed to settle to avoid the cost and risks of further litigation.

Who Gets Money From This Settlement

The class includes all individuals who participated in the Northwell Health 403(b) plan at any time during the class period, which runs from July 21, 2014, through March 9, 2026. That also covers alternate payees — people entitled to a benefit under the plan through a qualified domestic relations order (a court order splitting retirement assets, often in a divorce).

You likely qualify if any of the following applies:

• You were an active Northwell Health employee with a 403(b) account as of March 9, 2026
• You previously worked at Northwell and had a 403(b) account but no longer do
• You are a beneficiary entitled to receive death benefits under the plan
• You are an alternate payee under a qualified domestic relations order tied to a Northwell 403(b) account

The settlement administrator will verify eligibility using plan records — you do not need to prove participation yourself.

Related article: $3.85M Cardiovascular Consultants data breach settlement Your Medical Records Were Exposed, Here’s How to Claim Your Share of the Settlement

How Much You Can Expect to Receive

The total settlement fund is $2,750,000. After deducting court-approved attorneys’ fees, litigation expenses, administrative costs, taxes, and a case contribution award for the class representative, the remaining amount gets distributed to class members.

Class counsel will request attorneys’ fees not to exceed one-third of the gross settlement amount — $916,666.67 — plus a $10,000 case contribution award for Gonzalez.

The remaining funds split equally between two groups of claims:

• 50% goes to participants affected by the underperforming Lazard emerging markets fund (your share is based on your year-end account balances in that fund during the class period)
• 50% goes to participants affected by excessive recordkeeping fees (your share is based on how many years you held a positive account balance during the class period)

Former participants, beneficiaries, or alternate payees owed $10 or less will receive a minimum payment of $10. Individual payouts above that depend on how long you participated and how much you had invested in the Lazard fund.

You Probably Don’t Need to Do Anything — But Read This Carefully

Most class members do not need to take any action to receive their payment. The settlement administrator will use plan records to determine eligibility and distribute payments automatically.

However, there are two situations where you should take action:

If your address has changed: Former participants, beneficiaries, and alternate payees receiving payment by check need a current mailing address on file. Submit an update through the official settlement website.

If you want a rollover instead of a check: Former participants, beneficiaries, or alternate payees who wish to elect a rollover to another qualified retirement account can do so via the online form at strategicclaims.net/northwell-payment-election/

Current participants don’t need to do anything — payment will be credited directly to their plan account.

To update your information or elect a rollover:

1. Visit strategicclaims.net/northwell-payment-election/
2. Enter your name and contact information
3. Select your preferred payment method (check or rollover)
4. Provide your rollover account details if applicable
5. Submit the form and save a copy for your records

Estimated time to complete: 5 minutes.

Key Dates to Know

Milestone	Date
Lawsuit Filed	2020
Mediation Session	May 2025
Settlement Announced	August 20, 2025
Class Period Start	July 21, 2014
Class Period End	March 9, 2026
Claim Filing Deadline	Not applicable (automatic distribution)
Final Fairness Hearing	July 8, 2026
Expected Payment Date	TBD (after final court approval)

Frequently Asked Questions

Do I need to file a claim to get paid? 

No. For most people, payment is automatic. The settlement administrator uses plan records to identify eligible participants. You only need to take action if your mailing address has changed or you want to roll over your payment into another retirement account.

Is this settlement legitimate?

 Yes. The case, Gonzalez v. Northwell Health, Inc. et al. (Case No. 1:20-cv-03256), is a federal class action pending in the U.S. District Court for the Eastern District of New York. Strategic Claims Services is the court-appointed administrator. Only use the official site at strategicclaims.net/case/northwell403b.

When will I receive my payment?

 Payments go out after the court grants final approval and resolves any appeals. The fairness hearing is scheduled for July 8, 2026, so payments are unlikely before late 2026.

What if I no longer work at Northwell? 

Former employees still qualify as long as they participated in the 403(b) plan at any point between July 21, 2014, and March 9, 2026. Former participants receive payment by check or rollover — not credited to a plan account.

Do I need a lawyer to participate?

 No. This is an automatic distribution settlement. You don’t need an attorney to receive your share. Class counsel (Miller Shah LLP) represents the entire class collectively — you don’t need separate representation.

Will this payment affect my taxes? 

Possibly. Settlement payments from ERISA retirement plan cases may be treated as taxable income depending on how they’re distributed. Consult a tax professional for advice specific to your situation.

What if I missed the deadline?

 There is no claim filing deadline — payment is automatic. If you are a former participant concerned about missing a payment election deadline, contact Strategic Claims Services directly at 866-274-4004 or [email protected].

What were the excessive fees actually costing workers?

 ERISA requires plan fiduciaries to minimize reasonable plan expenses. The lawsuit alleged that Northwell paid recordkeeping fees higher than what a plan of its size — over $5.6 billion in assets — should have been paying given its negotiating power.

Sources & References

• Official settlement website: strategicclaims.net/case/northwell403b
• Court docket: Gonzalez v. Northwell Health, Inc. et al., Case No. 1:20-cv-03256, U.S. District Court, Eastern District of New York

Last Updated: March 28, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.