Washington Mutual may have unlawfully switched ERISA plan participants to a cash balance formula to determine certain benefits.

Investigation and pending class action lawsuits against Washington Mutual on behalf of Plaintiffs and a class (the 'Class') of all persons who were participants in the WaMu Pension Plan and predecessor plans ("the Plan"), at any time after January 1, 1987 (the "Class Period") to the present whose accrued pension benefits are based, in whole or in part, on the Plan's cash balance formula.

Predecessor plans, alleged in the complaint, include cash balance plans formerly maintained by:

(1) Great Western Financial Corporation;

(2) H.F. Ahmanson & Company;

(3) Dime Savings Bank of New York, FSB; and

(4) Pacific First Bank.

The class action complaint alleges that during the Class Period, Washington Mutual violated ERISA protections by:

(1) Causing the rate of benefit accrual to decrease because of the age of or attainment of any age by participants;

(2) Failing to provide adequate notice to participants of the impact on benefits caused by the conversion to a cash balance formula;

(3) Failing to fully disclose Plan provisions in the Summary Plan Descriptions provided to participants; and

(4) Failing to provide participants with the required Summaries of Material Modifications to the terms of the Plan.