Talen Energy Agrees to $20M Settlement in ERISA Class Action

Update: the official settlement website has indicated settlement payouts were made to 261 class members who returned rollover election forms by the 8/9/2024 deadline.

Talen Energy Corporation has agreed to pay $20,000,000 to settle a class action lawsuit for alleged violations of the federal ERISA pension statute. This settlement affects participants in the Talen Energy Retirement Plan whose employment ended during the period June 1, 2015, through December 5, 2019.

Who Benefits?: Individuals who participated in the Plan and worked in any management or other non-union employee role and whose employment terminated on or after they attained age 55 and during the period between June 1, 2015, and December 5, 2019, as well as any Beneficiary of any such Person who is deceased, and any Alternate Payee of any such Person subject to a QDRO.

How much can I get?: The amount each Class Member can receive varies. Group One Class Members may receive between $4,000 and $365,759, while Group Two Class Members will receive a uniform payment of $4,000.

Important Dates

• Fairness Hearing: June 3, 2024 (Plaintiffs’ Motion for Final Approval was granted by the Court)
• Deadline to File a Claim: July 1, 2024

Can I Claim an Award?

Class Members who are eligible for the settlement include those who:

1. Participated in the Talen Energy Retirement Plan and worked in any management or other non-union employee role.
2. Their employment must have terminated on or after they attained age 55
3. Their employment must have terminated during the period between June 1, 2015, and December 5, 2019.

Additionally, any Beneficiary of any such Person who is deceased, and any Alternate Payee of any such Person subject to a QDRO, are also included.

There are two groups of Class Members. Group One Class Members are those individuals who were terminated by a Participating Company. Group Two Class Members are those individuals who were not terminated by a Participating Company and thus would not have been eligible for the disputed benefits.

• Group One: Terminated by a Participating Company
• Group Two: Not terminated by a Participating Company

How Much Can Class Members Claim?

Group One Class Members will receive a Settlement payment based on the ratio that their alleged Estimated Losses have to the grand total of all alleged Estimated Losses for all Group One Class Members. Group Two Class Members will receive a uniform Settlement payment of $4,000.

• Group One: Payments based on Estimated Losses, ranging between $4,000 and $365,759.
• Group Two: Uniform payment of $4,000.

Is Proof Required to Claim the Reward?

No proof is required to claim a reward. The Settlement Administrator will calculate the amount each Class Member is entitled to receive based on the Plan’s records.

How to Class Member Can Claim an Award

To claim your award, all Class Members must complete and return the enclosed Rollover Election Form by July 1, 2024. Settlement Class Members will have the option to elect a rollover of their settlement payment to either an Individual Retirement Account (IRA) or another employer’s plan in which they participate and that accepts rollover contributions.

Claimants must mail their form to:

Talen Pension Settlement

c/o Kroll Settlement Administration

PO Box 225391

New York, NY 10150-5391 

If you choose a rollover and the administrative burdens and costs are not unreasonable and security protocols are satisfied, your rollover payment will be distributed by electronic transfer to the financial institution or employer plan which will receive the rollover. Otherwise, your rollover payment will be distributed by mailing you a check payable to your institution. If you do not choose a rollover, a check payable to you personally will be mailed to your address.

$20,000,000 Settlement Fund

The settlement amount is $20,000,000. This amount will be used to pay Court-approved costs, fees, and expenses, including Attorneys’ Fees and Costs, Service Awards to the Class Representatives, and Administrative Expenses. The remaining amount, known as the Net Settlement Amount, will be distributed to Class Members according to the Plan of Allocation.

The Net Settlement Amount will be allocated between two groups of Class Members based on the claims in the lawsuit and the relative dollar values and legal strengths of these claims as evaluated by Class Counsel.

Why Is There a Class Action Settlement?

The class action settlement was reached to resolve allegations that Talen Energy Corporation violated the federal ERISA pension statute. The Class Representatives allege that they are entitled to unreduced pension benefits because they were terminated within three years of a “Change in Control.” They also allege that certain Defendants violated their ERISA fiduciary duties by not providing information about the disputed benefits.

Next steps include the final approval of the Settlement by the Court and the calculation of the amount of the Settlement owed to each Class Member. If objections are made to the Settlement or appeals are taken by objectors who oppose the approval of the Settlement, this process may take a long time to complete.