Kellie Mejdrich
December 26, 2025
Northrop Grumman Settles Pension Benefit Estimate Fight
2 min
AI-made summary
- Northrop Grumman has reached a settlement in principle with a proposed class of retirees who alleged violations of the Employee Retirement Income Security Act (ERISA) over inaccurate pension estimates and failure to provide required benefit statements
- The settlement follows years of litigation, including two Ninth Circuit revivals and a partial dismissal in April 2024
- The retirees claimed they received incorrect benefit information and were later informed of overpayments, with some asked to repay significant amounts.
Northrop Grumman has agreed to settle a proposed class action from retirees alleging violations of federal benefits law over what they claimed were inaccurate pension estimates and the aerospace and defense company's failure to provide regular statements to beneficiaries, according to a joint filing in California federal court.
The proposed class of retirees and Northrop Grumman's pension plan administrative committee entered a joint notice of settlement Friday in the Employee Retirement Income Security Act suit saying the parties had "reached a settlement in principle of all claims and causes of action."
Retirees sued in 2018, alleging on behalf of a proposed class of pension plan participants that Northrop and a retirement plan administrator violated ERISA when they provided retirees with inaccurate benefit estimates. The proposed class also alleged that they were not provided certain federally required benefit statements. The retirement plan administrator won a motion to dismiss in 2022 and is no longer a defendant in the case.
Settlement follows protracted litigation in the proposed class action, with the Ninth Circuit twice reviving the case, most recently in May 2024. Then in April, U.S. District Judge Otis D. Wright II trimmed but refused to completely toss retirees' claims against Northrop Grumman's retirement plan committee.
Retirees specifically alleged in an amended complaint subject to Judge Wright's April order that the administrative committee of the Northrop Grumman pension plan failed to provide retirees Stephen Bafford, Evelyn Wilson and others with pension benefit statements at least once every three years or annual notices of their availability between 2002 and 2016. Bafford and Wilson also alleged in their complaint that they were sent notices in 2016 and 2017 informing them that their pension benefits had been overestimated and overpaid in error.
According to court records, Bafford was informed that his monthly benefit would be cut by more than half, while Wilson was told her benefits should have been less than half of what they had been up to that point, and she was asked to repay more than $35,000.
Representatives of the parties didn't immediately respond to requests for comment on the settlement Monday.
The retirees are represented by Susan L. Meter and Samantha L. Brener of Kantor & Kantor LLP and by Teresa S. Renaker and Kirsten G. Scott of Renaker Scott LLP.
The committee is represented by Nancy G. Ross, Kristin W. Silverman, Douglas A. Smith and Jordan C. Hilton of Mayer Brown LLP.
The case is Bafford et al. v. Northrop Grumman Corp. et al., case number 2:18-cv-10219, in the U.S. District Court for the Central District of California.
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Kellie Mejdrich
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