Americans will receive up to $4,000 from their $20 million retirement settlement — and you don’t even have to file a claim

HUNDREDS of workers can claim up to $4,000 in a multimillion-dollar settlement.

Talen Energy Corporation is paying $20 million to settle a proposed class action lawsuit alleging unpaid benefits.

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After a two-month mediation process, the company agreed to the settlement to resolve allegations that it violated the Employee Retirement Income Security Act by reducing pension benefits.

The company did not admit any wrongdoing, but agreed to the settlement.

The agreement will benefit workers participating in the Talen Energy Retirement Plan between June 1, 2015 and December 5, 2019.

Talen Energy will provide payments worth $4,000 to a group of 132 workers who were not laid off by the company, according to a settlement motion filed in February.

The company will also pay an equal share of the remaining settlement fund.

This can range from $4,000 to $365,759 for about 200 workers who were laid off, per Bloomberg Law.

Class members don’t need to file a claim to receive payment – but they may want to submit a rollover form.

HOW TO CLAIM

If class members want to transfer their settlement payment to an existing retirement account, they must complete a transfer form.

The rollover form must be completed by July 1, 2024.

Class members may indicate on the Rollover Election Form whether they wish to arrange a rollover of the settlement payment to an IRA or employer retirement plan.

They can also indicate whether they would prefer to receive a direct payment that is immediately taxable.

If the student chooses to receive the rollover, payment will be made by electronic transfer to the financial institution or plan of their choice.

What is a class action settlement?

Class action lawsuits offer groups of people, or “classes,” a way to come together in court.

These lawsuits are often filed by one or a few people who allege that a company or other entity has harmed a large group of people.

When a lawsuit becomes a class action, it extends to all “class members,” or people who may have similar claims to those who filed the lawsuit.

Companies often settle class actions – offering payment to class members who typically waive their right to pursue legal action by accepting money.

These payment agreements often include statements from the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination or false advertising are some examples of what can lead to a class action lawsuit at a company’s door.

If electronic transfer is not an option, you will receive a check made payable to your institution.

If you choose not to transfer the settlement payment to an existing account, a check payable to you personally will be mailed to your address.

The Talen Energy settlement comes as Capital One agreed to pay $16 million to resolve surcharge claims.

A telecommunications company is also paying a $2.2 million settlement.