Patrick Miller-Bartley
Thu, 10/26/2023
On October 17, 2023, a class of current and former Yale New Haven Hospital employees informed the court that they had reached an agreement in principle to settle their claims that the hospital had failed to properly monitor their 403(b) retirement plan, allowing the plan’s recordkeeper, Fidelity Management Trust Co., to overcharge the plan for its recordkeeping services. A 403(b) plan is similar to a 401(k) plan, but is for employees at non-profits.
The filing did not describe the terms of the parties’ agreement.
According to the complaint filed by the employees, the plan had roughly $1.66 billion in assets, and over 26,000 participants. If Yale New Haven had properly leveraged the plan’s size, the plaintiffs asserted, it should have been able to bargain for lower recordkeeping fees. Instead, the plan paid Fidelity $46 per participant in 2020, where comparable plans paid no more than $35 per participant. The court had granted class certification to the employees in July, including all participants and beneficiaries of the plan beginning in January 2016.
If you have questions about your 401(k), 403(b), or other retirement plan, don’t hesitate to contact us.
