Garnet Health Sued Over Bundled Retirement Plan Package Fees

Garnet Health Medical Center was hit with a proposed class action by workers who say their retirement plan charges excessive fees while offering pricey and poorly performing funds.

The New York health system’s $273 million retirement plan offered an “entry-level” stable value fund from the plan’s recordkeeper, Principal Life Insurance Co., that produced paltry returns and is primarily aimed at “smaller, less sophisticated” plans, four former Garnet employees said in a complaint filed Monday in the US District Court for the Southern District of New York.

The plan also offered overly expensive index funds and actively managed mutual funds from ...