Two 403(b) plan participants have filed a class-action lawsuit against Bronson Healthcare Group, Kalamazoo, Mich., alleging the non-profit health-care provider breached its fiduciary duties in the investment options offered and fees charged in the plan.
The lawsuit, filed in U.S. District Court in Kalamazoo, alleges the company breached its fiduciary duties under the Employee Retirement Income Security Act of 1974 by failing to monitor the fees charged by record keeper Fidelity Investments and by utilizing Fidelity's active suite of target-date funds rather than the less expensive passive offering, according to the court filing. Fidelity was not named as a defendant in the suit.
As of Dec. 31, 2019, the Bronson Healthcare Group Inc. 403(b) Tax Sheltered Matching Plan had $738 million in assets, according to the company's most recent Form 5500 filing.
Carolyn Wyllie, Bronson Health spokeswoman, said the company does not comment on pending litigation.
Troy Haney, attorney for the plaintiffs, could not be immediately reached for comment.