Munson Healthcare, a Traverse City, Michigan-based operator of community hospitals and other medical facilities, will pay $600,000 to settle an ERISA complaint by a former 403(b) plan participant who accused plan executives of charging high record-keeping fees and failing to replace a record keeper and consultants.
The settlement agreement, which requires court approval, was reported May 12 in a document filed in the U.S. District Court in Kalamazoo, Mich., by lawyers for both parties in the case of Peck vs. Munson Healthcare et al.
“Defendants have vigorously denied, and continue to vigorously deny, any wrongdoing and any liability arising from the factual allegations and claims,” the document said.
“The parties have decided to enter into this agreement because it provides substantial and meaningful benefits to the members of the class and the plan, and to avoid the substantial costs, uncertainties, and risks of continued litigation,” the document said.
The settlement covers participants in the plan from March 29, 2016, until preliminary court approval is granted.
Munson and plan fiduciaries were sued in March 2022, but they submitted their arguments to a mediator 12 months later and reached an agreement in principle.
The Munson 403(b) Plan had assets of $441.3 million as of Dec. 31, 2021, according to the latest Form 5500.