Many plan sponsors are receiving postcard or letter notices about a class action settlement. This is related to the possible settlement over a 22 year period (January 1, 1997 through December 20, 2018) regarding foreign currency exchange services provided by Bank of New York Mellon (BNYM). You can find full details here. We’ve put together a brief overview:
Plan Sponsors Received a Letter
If the plan sponsor received a letter, they do not need to take any action to be included in the settlement.
Plan Sponsors Received a Postcard
If the plan sponsor believes the plan used the BNYM foreign currency exchange services and wants to be included in the potential settlement, they must complete and submit a Claim Form with adequate supporting documentation by April 29, 2019.
If plan sponsors are included in the settlement, they will need to determine which participants were affected and allocate the earnings across the participants from 1997 to 2018. This could be a lot of work and is a fiduciary decision. They can also wait for the settlement check and then decide. In some cases, they may be able to determine how it should be allocated, and in others, perhaps disclaim the amount.
Thus, we recommend no action be taken at this time. However, we are not a law firm and this is not to be taken as legal advice. Plan sponsors should refer to their own legal counsel for such advice.