Ex-Cape Cod Healthcare Worker Sues Over Retirement Plan Handling

Cape Cod Healthcare Inc. was sued by a former employee who says the Massachusetts medical provider mismanages its $891 million retirement plan by overpaying for administrative services and offering funds with unreasonably low returns.

Nearly one-fourth of the plan’s assets were invested in a stable value fund from Lincoln Financial Group that paid a guaranteed interest rate of only 1%, Cassie Somers said in the class action complaint. This rate is far below the rate of inflation and lower than the rate paid by similar funds in other plans, Somers said. It’s also one-third of the rate paid by ...