Wisconsin Healthcare System Sued for Retirement Plan Forfeitures

Froedtert ThedaCare Health Inc. mismanages an employee retirement plan by improperly using the money forfeited by departing workers to fund its own plan contributions, a federal lawsuit alleges.

The Wisconsin healthcare system, which was established by the 2024 combination of Froedtert Health Inc. and ThedaCare Health Inc., consistently chose to use retirement plan forfeitures for its own benefit instead of using them to reduce the expenses paid by workers, two plan participants alleged in a proposed class complaint. This drove more than $9 million in cumulative plan losses since 2020, according to the complaint, which was filed Tuesday in ...