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Baystate Health settles with employees in class action lawsuit over retirement fund fees

Baystate Franklin Medical Center in Greenfield, Massachusetts.
File photo / Paul Franz
Daily Hampshire Gazette / gazettenet.com
Baystate Franklin Medical Center in Greenfield, Massachusetts.

Thousands of Baystate Health employees will receive some compensation under the terms of a class-action lawsuit. It alleged employees were charged excessive fees for managing their retirement fund.

Baystate Health agreed to a $500,000.00 settlement with two employees representing many others in the lawsuit. Court documents show that’s about 10% what the employees say they were overcharged.

"[T]he $500,000 recovery represents 10.4% of the total estimated losses," the plaintiffs wrote in their filing supporting the settlement. "This is on par with numerous other [Employee Retirement Income Security Act] class action settlements that have been approved across the country."

The National Association of Plan Advisors, a national nonprofit organization created by and for retirement plan advisors, reports retirement plan administrators, Empower Retirement and MassMutual, charged employees roughly $70 each. That's about $40 more in recordkeeping fees than others at similar businesses paid, the article said.

This week, lawyers asked the judge to approve the settlement and schedule a final hearing.

Lawyers for the plaintiffs declined to comment and Baystate Health did not answer a request for comment.

Disclosure: Baystate Health is among the businesses who donate to New England Public Media.

Carrie Healy hosts the local broadcast of "Morning Edition" at NEPM. She also hosts the station’s weekly government and politics segment “Beacon Hill In 5” for broadcast radio and podcast syndication.