Baystate Health Inc., Springfield, Mass., has agreed to settle an ERISA lawsuit filed by a current and former retirement plan participant who alleged a company 403(b) plan charged excessive record-keeping and administrative fees.
No terms were announced in the settlement notice filed Feb. 19 in a U.S. District Court in Springfield, Mass. Details will be provided to the court, which must approve the settlement, by March 31, according to Chechile et al. vs. Baystate Health Inc. et al.
The plaintiffs sued Baystate and its fiduciaries in November 2022, saying they "breached their duty of prudence to the plan, to plaintiffs and all other plan participants by authorizing the plan to pay objectively unreasonable fees" for record-keeping and administrative services.
The lawsuit seeks class-action status, alleging that the ERISA violations started in November 2016 and continue today.
The settlement notice said the parties met with a mediator on Feb. 10 and reached an agreement in principle.
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.