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Baystate Is Latest Hospital System Sued for Retirement Plan Fees

Nov. 17, 2022, 7:40 PM

Massachusetts-based Baystate Health Inc. mismanages the $910 million retirement plan covering its workforce by overpaying the plan’s service providers, current and former employees alleged Thursday in a proposed class action complaint.

The Baystate retirement plan pays annual administrative fees of about $70 per person, when a reasonable annual fee would be closer to $31 per person, the employees said in their complaint. The fees paid by the Baystate plan are much higher than those paid by similar and even smaller plans for “virtually the same package of services,” the employees said.

These high fee levels suggest Baystate “engaged in ...