Memorial Hermann Health Sued Over Retirement Plan Funds, Fees

Houston-based Memorial Hermann Health System mismanages a pair of retirement plans covering tens of thousands of people by overpaying for administrative services and offering poorly performing target date funds, according to a new lawsuit.

Memorial’s retirement plans, which together hold more than $2.5 billion, charge about $40 per person in annual administrative fees, when a reasonable fee would be closer to $17 per person, four former employees said in a class action complaint. Memorial failed to take appropriate action to negotiate lower fees or look for less expensive service providers, they said.

The lawsuit, filed Tuesday in the US ...