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Lawsuit Relating to Lockheed-Martin 401(k) Plan

by Maury Mechanick - May 2015

Some if not all of you may have recently received a notice in the mail relating to a settlement reached regarding the administration of the Lockheed Martin 401(k) plan that will entitle at least certain sub-classes of participants in that plan to a monetary award of some amount. While I do not see this as a major issue that COMARA needs to get involved with, since unlike matters related to pension or retiree health care benefits, the 401(k) plan is entirely voluntary and choices as to how and what to invest in are entirely up to the individual, I do think it would still be appropriate to at least mention the settlement on our web page and provide a link to information that is available on line regarding the settlement proposal. And in the case of at least one sub-class, if individuals which to participate, they need to provide notice by July 6, 2015, in order to be eligible to get a distribution. While I suspect most if not all of our membership, to the extent that may potentially be affected by this, will have received a notice about this in the mail, in the event that some have not, this still could be a valuable service for our membership. The settlement agreement and related documentation are available at http://www.lm401ksettlement.com/

Also, thanks to Peter Jacxsens for flagging this issue.

Maury

 

Just a couple words of clarification

by Rich Lustig - May 2015

http://www.lm401ksettlement.com/

In August of 2000, the COMSAT Retirement Savings Plan was renamed the Lockheed Martin Global Telecommunications (LMGT) Savings Plan with the Fidelity Investments assets of the plan remaining separate from the LM corporate plan. LMGT then ceased operations on December 31, 2002.

In early 2003, the LMGT plan assets were merged into the Lockheed Martin Salaried Savings Plans (LMSSP). Any former COMSAT plan member that still had an account at Fidelity became an "active" plan member of the LMSSP. The settlement look back period begins on September 11, 2000 and runs through December 22, 2008.

Maury's note regarding individuals that need to take action with the settlement administrator only applies to those former participants whose accounts rolled over to the LMSSP but subsequently closed them out sometime after 2003.

As I remember, there were many COMSAT retirees and other former employees that had plan accounts remaining under the LMGT plan and therefore subsequently became LMSSP participants. So I suspect that this settlement will apply to many CQ'ers.

I also thoroughly agree with Maury that there's no action to be taken by COMARA as this is a class action suit that envelops a number of company plans that were acquired by LM in the time period specified.

Rich