CommonSpirit Health Sued Over Retirement Plan’s Fidelity Funds

Catholic Health Initiatives and CommonSpirit Health are facing a proposed class action challenging a suite of target-date funds in the health system’s $3.2 billion retirement plan, according to a new lawsuit filed in the Eastern District of Kentucky.

The lawsuit by former Catholic Health employee Yosaun Smith centers on a suite of actively managed target date funds from Fidelity Management Trust Co., which isn’t named as a defendant. These funds, which Smith says serve as the plan’s default investment option, are more expensive and riskier than a similar suite of passively managed Fidelity funds, and they performed worse during the ...