Baystate Health Inc. has agreed to pay $500,000 to settle an ERISA lawsuit filed by participants in a company 403(b) plan who alleged the plan charged excessive administrative and record-keeping fees.
The terms are contained in a settlement document filed May 8 in a U.S. District Court in Springfield, Mass., by the plaintiffs' lawyers in the case of Chechile et al. vs. Baystate Health Inc. The court must approved the agreement.
In February, the parties announced a settlement in principle but didn't disclose terms at that time. The plaintiffs sued in November 2022.
"Defendants deny any and all liability, and deny any and all allegations of wrongdoing made in the complaint," the settlement document said. "Defendants further contend that they acted prudently, loyally and in accordance with the plan documents at all times and in all respects to the plan."
The document said the parties met with a mediator in February, leading to a settlement agreement in principle.
"In the absence of a settlement, plaintiffs would have faced potential risks," said the document, noting that this settlement of a class-action lawsuit will affect approximately 26,800 participants.
"At a minimum, continuing the litigation would have resulted in complex and costly proceedings, and significantly delayed any relief to the class," the document said. "It was reasonable for plaintiffs to reach a settlement on these terms."
The Baystate Health Inc. Retirement Plan, Springfield, Mass., had assets of $1.08 billion as of Dec. 31, 2021, according to the latest Form 5500.
