$3 Million Class Action Settlement Reached in Boston Children’s Hospital Retirement Plan Lawsuit

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A $3 million settlement has been reached that, if approved by the court, will resolve a proposed class action lawsuit that alleged Boston Children’s Hospital and its board of directors and retirement committee failed to prudently monitor the hospital’s employee retirement plan, causing it to pay excessive recordkeeping fees.

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The proposed settlement looks to cover all individuals who participated in the Children’s Hospital Corporation Tax-Deferred Annuity Plan at any time between January 18, 2016 and the date the settlement receives preliminary approval (the class period). The Boston Children’s Hospital Retirement Plan settlement class also includes beneficiaries of deceased participants and alternate payees entitled to receive plan benefits under a qualified domestic relations order, provided the associated participant was enrolled in the plan during the class period.

A memo submitted in support of the proposed class action settlement says the Boston Children’s Hospital retirement plan had more than 20,000 participants at all times during the class period. If the deal receives preliminary court approval, class members can expect to receive notice of the settlement by mail or email within 30 days of the preliminary approval date, the memo states.

Eligible class members do not have to do anything to receive Boston Children’s Hospital settlement benefits, court documents say.

Payments to current participants and beneficiaries or alternate payees of a participant with an active account will be deposited directly into their individual investment accounts within the plan.

Payments to former participants and beneficiaries or alternate payees of a former participant will be made by check. Alternatively, these class members can elect to have payments rolled over into another qualified retirement account.

Class members will be able to request a rollover of settlement funds to another qualified retirement account, or update their address or beneficiary information, through the official settlement website once it is established.

ClassAction.org will update this page when the official Boston Children’s Hospital settlement website is launched.

According to court documents, the amount to be paid to each class member has yet to be determined.

The initial Boston Children’s Hospital lawsuit claimed the defendants violated the federal Employee Retirement Income Security Act by failing to select prudent investment options and ensure that expenses for recordkeeping and administrative costs remained reasonable. The defendants’ alleged fiduciary breaches caused plan participants to lose millions in retirement savings, the case charged.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.