Colgate-Palmolive Announces $332M Pension Settlement: Who Qualifies for Payments?

Colgate-Palmolive agreed to pay $332 million to resolve a settlement filed over the pension. The settlement resolved the lawsuit filed in 2016; the former and current employees can receive the settlement payout. The article covers the information about the Colgate-Palmolive settlement and its payout. 

The preliminary settlement covers 1,177 employees whose pension was miscalculated, hence they will receive the settlement payout. The defendant has not admitted to any wrongdoing, but has decided to resolve the long-running class action lawsuit.

The Colgate-Palmolive settlement still awaits federal court approval from the US District Court, Southern District of New York. The claiming process and further details of the settlement are not revealed yet. 

What was the Colgate-Palmolive settlement litigation about?

The Colgate-Palmolive class action lawsuit has been going on for a long time. The money was set aside for the settlement earlier as well 2023 and 2025. The litigation involves the following allegations and claims:

• This lawsuit involves Colgate’s amended pension plan to a cash balance plan, where the employees receive the benefits in a lump sum. 
• The plan was amended in 2005 to give extra annuity payments to people who received the lump sum payout but did not receive the full benefits. 
• Later, the employee sued the company because they had miscalculated the payment and paid an additional payment. 
• The settlement claims 1,177 employees are covered under the settlement who received the miscalculated pension. 
• The company’s employees’ retirement income plan has around 8410 employees with $1.4 billion in assets in 2023. 

Who qualifies for the Colgate-Palmolive settlement payment?

Class members of the settlement will receive the payout if they meet the eligibility conditions. The eligibility conditions are not defined yet; however, based on the litigation, there can be the following conditions:

• Former employees who received a lump sum payment from Colgate-Palmolive’s retirement plan. 
• Current employees of Colgate-Palmolive who have opted for a lump-sum payout from the retirement plan and were affected by the miscalculations. 
• The class members will receive the settlement notice from the administrator if they were identified as the affected customer. 

What will be the Colgate-Palmolive Settlement payout?

The Colgate-Palmolive settlement involves a $332 million fund covering 1,177 employees. The settlement fund will first be used to cover the litigation costs, attorney fees & costs, service awards for the class representatives, and settlement expenses. 

According to the reports, the employees would receive the payout after the deduction of the mentioned expenses. The net settlement fund for the employees who qualified for the payout will be $232.7 million, which will be used to equally distribute the payout among the qualified class members. 

The settlement payout per employee is not determined yet, as it will depend on the number of claims filed and the expenses finalized for the settlement. For the payout amount, you will have to wait for the final approval or settlement notice, where you will get full information about the class action lawsuit. 

What happens next in the Colgate-Palmolive Settlement?

Yesterday, they announced a settlement of $332 million to resolve the case, but it is not finalized until the court approves the settlement. The Colgate-Palmolive settlement still awaits final approval from the US District Court for the Southern District of New York. 

The final court hearing for McCutcheon et al. v. Colgate-Palmolive Co. is not scheduled yet. The court will review the fairness and reasonability of the settlement to determine whether the settlement is enough for the class members. 

After the final approval from the federal court, we can expect the settlement website release and claim process information. However, you should know that if someone appeals against the federal court decision on the Colgate-Palmolive settlement, it can stop the settlement distribution and further process. 

The Colgate-Palmolive settlement has finally reached the preliminary stage after nine years. Now, the settlement payout will be finalized after the final approval from the federal court, so if you are an affected employee, you should keep an eye on the settlement news to claim the settlement payout whenever the process begins.  

Disclaimer: Colgate-Palmolive $332M pension settlement details are for informational purposes only. Confirm eligibility and payout information through official sources.