Sutter Health Sued Over Retirement Plan’s Fidelity Freedom Funds

California hospital system Sutter Health is facing a second federal lawsuit challenging the fees and investment options in its retirement plan.

The latest proposed class action, filed Sept. 4 in the U.S. District Court for the Eastern District of California, takes aim at the hospital’s decision to offer a suite of actively managed target date funds from Fidelity Management Trust Co. as the plan’s default investment option. These funds are unnecessarily risky and significantly more expensive than other Fidelity target date funds, causing plan participants to lose out on retirement savings, participants Christina Bonicarlo and Nicole Garcia allege in their ...