Safeway Settles Twin 401(k) Class Suits for $8.5 Million

Safeway Inc. and Aon Hewitt Investment Consulting Inc. will pay $8.5 million to settle two proposed class actions challenging Safeway’s 401(k) plan, the grocery chain told a federal judge in San Francisco Sept. 13.

The deal resolves two cases by current and former employees who challenged different aspects of the grocer’s $1.9 billion 401(k) plan. One challenges the JPMorgan target-date funds offered by the plan, while the other objects to the plan’s investments and fee structure more generally. Safeway will pay $8 million of the settlement, and Aon will pay $500,000.

The deal is expected to benefit 35,000 participants in ...