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Costco Retirement Plan Fee Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

Costco Wholesale Corporation, the Costco Wholesale Corporation Board of Directors, and the Costco Benefits Committee are settling a class action brought under the Employee Retirement Income Security Act of 1974 (ERISA) about the management, operation, and administration of the Costco 401(k) Retirement Plan. The complaint alleged that Costco allowed the plan to incur higher administrative fees and investment management fees than were reasonable and necessary.

Docket Number:

1:20-cv-00937

Company: Costco Wholesale Corporation

Filing Deadline: July 1, 2022

Class Period: May 30, 2014 to March 17, 2022

Objection Deadline: June 17, 2022

Final Approval Hearing: July 18, 2022

Proof of Purchase:

You do not need to provide proof. You must submit a claim form if you are a Former Participant; you do not have to do anything if you are a Current Participant.

Eligibility:

You may be eligible if you were a participant, beneficiary, or alternate payee of the Costco 401(k) Retirement Plan (1) who had a plan account as of March 17, 2022, or (2) who did not have a plan account as of March 17, 2022 but who had a plan account on or after the last business day of a month or and after May 30, 2014, if that plan account reached a balance in excess of $1,000 for at least twelve months beginning on or after May 30, 2014 (with the balance and months to be calculated as of the last business day of a month).

Typical Settlement Amount:

For Current Participants: Administrative fee reduction with a value of $3.2 million. Costco will make sure that the Plan Administrative Service Per Capita Recordkeeping fee deducted from plan accounts does not exceed $3.25 per account per quarter for as many quarters as it takes for the reduction to equal a total of $3.2 million.
For Former Participants and Current Participants who cease to have a plan account by the settlement’s effective date: Pool of $400,000for payments by check. Payment amounts will be based on the number of quarters the Former Participant’s account balance was more than $1,000 between May 30, 2014 and March 17, 2022 according to a Plan of Allocation. No amount of less than $5 will be distributed.

Total Settlement Amount: $5.1 million

Class Representative Proposed Incentive Fee:

$10,000

Law Firm:
Walcheske & Luzi LLC

Claim Form: Costco Retirement Plan Fee Settlement Former Participant Claim Form

Case Name: Soulek v. Costco Wholesale Corporation, et al.

Settlement Website: Costco Retirement Plan Fee Settlement Website

Claims Administrator:
Analytics Consulting, LLC

Claims Administrator Contact Information:

The Costco 401(k) Plan Settlement Administrator
P.O. Box 2007
Chanhassen, MN 55317-2007
info@costcoerisasettlement.com
844-473-0587

Tags: Breach of Fiduciary Duty, Excessive Fees, Retirement Plans