Published
November 14, 2025
If you took a lump sum from the Colgate-Palmolive Employees Retirement Income Plan, this $332 million settlement may owe you back pay and a higher monthly pension — paid automatically, with no claim form.
What Is the Colgate-Palmolive Pension Class Action About?
You may be part of a new $332 million Colgate-Palmolive pension class action settlement if you participated in the Colgate-Palmolive Employees Retirement Income Plan and received your benefit as a lump sum instead of monthly pension payments.The class action lawsuit claims that some workers and their spouses were owed an additional "residual annuity" benefit on top of their lump sum. Under the proposed settlement, eligible class members can receive a one time back payment for past underpaid pension benefits, plus higher monthly annuity payments for the rest of their lives in many cases. Beneficiaries and estates of some deceased participants may also qualify for a one time payment.
This is a pension case brought under the federal retirement-benefits law known as ERISA. If that is new to you, our plain-English guide to ERISA explains what the law requires and how these cases work.
The Colgate-Palmolive class action case centers on a 2004 amendment known as the Residual Annuity Amendment. This amendment was retroactively effective as of July 1, 1989, when Colgate converted the Plan to a cash balance pension plan and for the first time allowed participants to elect a lump sum distribution instead of a traditional monthly annuity.
Plaintiffs claimed that for certain employees who took a lump sum, the Plan should have also provided an extra residual annuity benefit under the amendment. In simple terms, they argued that some lump sum payouts did not reflect the full value of the pension benefit promised by the Plan, so those workers and their spouses were owed additional monthly payments.
Colgate and the other defendants deny any wrongdoing, deny that benefits were miscalculated, and deny that any additional payments were required. After years of litigation in the Southern District of New York and the Second Circuit Court of Appeals, the parties reached a settlement that, if approved, will resolve all related claims.
Status
Finally Approved
Final approval granted January 2026
Settlement Amount
$332,000,000
one-time back payments plus increased lifetime monthly annuities
Claim Form
Not Required
automatic pension adjustment for identified class members
Payments Due By
June 18, 2026
Colgate must make back payments and begin adjusted monthly annuities
Who Is in the Settlement Class?
The Court certified a mandatory, non opt out class in this pension case. The class is defined in the Settlement Agreement as:Any person who, under any of Appendices B, C, or D of the Plan, is entitled to a greater benefit than his or her Accrued Benefit as defined in Plan section 1.15, provided that such person received a lump sum payment from the Plan, and the beneficiaries and estates of any such person.
To be a class member, you must also be listed on Attachment A to the Settlement Agreement, which reflects the parties best efforts to identify everyone who meets this definition as of the settlement date.
If your name appears at the top of a mailed Notice and you received this notice at your address, you have been identified as a class member.
If the class member named on the first page of the Notice is deceased, the settlement benefit that person would have received will instead be paid to the class member’s successor or successors, as described in the settlement.
What Does the Settlement Provide?
The proposed settlement creates a total settlement fund of $332,000,000.From this amount, the Court may approve certain deductions, including:
• A service award to the class representative, Ms. McCutcheon
• Settlement administration costs
• Lawyer and litigation fees and expenses
After these deductions, the balance is called the Settlement Benefit Fund, which will be used to fund class member benefits.
The Settlement Benefit Fund is expected to be allocated as:
• One-time back payments for alleged missed prior annuity payments
• Ongoing future monthly annuity payments (or increases to existing annuities) for eligible participants and spouses
The exact size of the Settlement Benefit Fund will depend on how much the Court ultimately awards for fees, expenses, administration costs, and the service award. If the Court awards less than the maximum amounts requested, the net benefit available to class members will be higher and each person’s benefit will increase proportionally.
How Will My Individual Benefit Be Calculated?
This is not a flat per person payout settlement. Each class member’s benefit is individualized and depends on their own history under the Plan.Under the settlement, your benefit is based on a calculation of what Class Counsel argued the Plan should be paying you, and should have been paying you, under the Residual Annuity Amendment. That includes:
• The annuity you should have received starting on the date you first took your lump sum distribution
• Any annuity payments you have already received
• Any retroactive annuity payment you may have received around 2017
• Interest and a pro rata discount to account for the risks and delays avoided through settlement
If you received a notice, it should include your personalized estimated settlement amounts, which may include:
• A Participant Back Payment, a one-time lump sum to make up for alleged past underpayments
• A Participant Monthly Annuity amount for the rest of your life
• A Spouse Monthly Annuity amount, payable after your death for the life of your spouse at the time you were originally paid, if that spouse is still living
These amounts are estimates only and may change to reflect corrections, the exact fees and costs approved, and your specific circumstances. Payments may also be subject to applicable tax withholding.
Do I Need to File a Claim?
No. You do not need to submit a claim form to receive benefits from this class action settlement.The Court granted final approval of the settlement in January 2026, so the Plan will calculate your final settlement benefit and pay it to you automatically through:
• A one-time back payment for alleged missed annuity amounts
• Future monthly annuity payments or an increase in your existing monthly annuity
Payments will be sent to the address where your Notice was mailed, or via electronic payment if you already receive Plan annuity payments that way.
A Personal Information Form was included with the mailed Notice so you can correct or update your contact information. If the information on your Notice is still correct, you do not need to do anything to receive your benefits.
When Will Payments Be Made?
The Court granted final approval of the settlement following the January 15, 2026 fairness hearing. Under the terms of the settlement, Colgate must make the one-time back payments and begin the adjusted monthly annuity payments by June 18, 2026.Eligible class members should receive:
• Their one-time back payment
• Their first adjusted monthly annuity payment
on or before that June 18, 2026 deadline. No action is required on your part to receive these payments.
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Can I Be Excluded From the Settlement?
No. This is a mandatory, non opt out pension class.Because of the way the Plan and ERISA work, the Court certified the class so that all people who fall within the definition are included, and their pension benefits and related claims can be resolved in one proceeding.
You do not have the right to exclude yourself. By the same token, you do not need to do anything now to share in the benefits of an approved settlement.
How Will the Lawyers Be Paid?
Class Counsel will apply to the Court for an award of lawyer fees, costs, and expenses, to be paid from the Total Settlement Amount.As described in the Notice, Class Counsel will ask for:
• Attorneys fees in an amount not to exceed a set percentage of the Total Settlement Amount
• Reimbursement of out of pocket litigation costs and expenses, capped at a specified maximum
• Settlement administration costs, up to a specified maximum
• A service award for Ms. McCutcheon for her work as class representative
The class action court will decide how much to award, up to those caps. If the Court awards less than the requested amounts, the Settlement Benefit Fund available for class members will increase proportionally.
How Do I Get More Information?
More detailed information about the lawsuit and settlement, including key pleadings, the Settlement Agreement, Class Counsel’s fee motion, and Court orders, can be obtained by:• Visiting the official settlement website: www.ColgatePensionClassAction.com
• Registering and using the PACER system at pacer.psc.uscourts.gov to view case filings online
• Reviewing the case file in person at the Clerk’s Office, U.S. District Court for the Southern District of New York, during regular business hours
Official Settlement Notice
Sources
• U.S. District Court, Southern District of New York, McCutcheon v. Colgate-Palmolive Co., Case No. 16-cv-4170• Official Class Action Settlement Notice and website: www.ColgatePensionClassAction.com
For more class actions keep scrolling below.
Settlement Amount
$332,000,000
One-time back payments plus increased lifetime monthly annuities
Case Title
McCutcheon v. Colgate-Palmolive Co., et al.
Case Number
1:16-cv-04170
Court
U.S. District Court, Southern District of New York
Judge
Hon. Lorna G. Schofield
Final Approval
Granted January 2026
Payments due by June 18, 2026
Official Website
Colgate Pension Class Action
