Allina Health Sued Over Retirement Plans’ Deal With Fidelity

Allina Health System mismanaged its retirement plans by giving the plan trustee, Fidelity Management Trust Co., too much power to fill the plans with expensive funds that earned money for Fidelity, a new lawsuit alleges (Larson v. Allina Health Sys., D. Minn., No. 0:17-cv-03835, complaint filed 8/18/17).

The lawsuit says the Minnesota nonprofit health system “abdicated” its fiduciary oversight of its 401(k) and 403(b) retirement plans by failing to stop Fidelity from filling the plans with expensive, non-Fidelity mutual funds that earned millions of dollars in revenue-sharing payments for Fidelity. Fidelity also had discretion to add any available ...