Altru Health System, located in Grand Forks, has agreed to a substantial $975,000 settlement in response to a lawsuit by employees claiming that the organization failed to properly monitor its Retirement Savings Plan’s fees and investment alternatives. The alleged failure was found to be in violation of the Employee Retirement Income Security Act.
Despite denying accusations of not choosing low-cost funds and not negotiating reasonable record keeping fees, Altru chose to resolve the dispute without admitting fault. As part of the resolution, the health system will enact changes to the Plan to increase options available to participants and to urge vendors to offer their best-priced investment options.
Further demonstrating commitment to ensuring the Plan operates in the best interest of all participants, Altru will hire an independent consultant to assess the Plan’s administration and recommend potential improvements.
Details of the settlement will be communicated to participants via mailed notifications and all are urged to review these thoroughly. Strict timeframes for submitting claims or opt-outs could be imposed.
The lawsuit’s conclusion underlines the importance of regular Plan fee and investment option reviews for the retirement plan industry. This coupled with a fiduciary obligation to act in the participants’ best interests are critical elements to maintaining plan integrity.
Court approval is required for the proposed settlement to proceed. Oppositions to the $975,000 settlement must be filed by July 3rd, with a final decision set for August 2nd at the Fargo courthouse. It is important for relevant parties to be aware of these dates to ensure full participation.
An option to express objections at the Fairness Hearing exists. It is also acceptable to submit written objections prior to the hearing, which may serve as references throughout the hearing itself.
The Net Settlement Amount, calculated in relation to their Balance to the full Balance of all Class Members, is due to each Class member after deductions for taxes, court-approved expenses, and attorney fees. The minimum amount a participant can receive is $10. Any queries regarding case proceedings should be directed to the Case Administrator via mail or phone call.
