In a recent lawsuit, it has been alleged that the Houston-based Memorial Hermann Health System has mismanaged a pair of retirement plans that cover tens of thousands of people. The lawsuit claims that Memorial Hermann has been overpaying for administrative services and offering poorly performing target date funds to plan participants.
According to the lawsuit, Memorial’s retirement plans, which hold over $2.5 billion in assets, charge an annual administrative fee of about $40 per person. However, former employees who filed the complaint argue that a reasonable fee would be closer to $17 per person. They claim that Memorial Hermann did not take appropriate action to negotiate lower fees or seek out less expensive service providers.
The lawsuit raises concerns about how Memorial Hermann manages its retirement plans and the impact on the tens of thousands of people who participate in them. It highlights questions about the system’s fiduciary responsibilities and its handling of plan administration and investment options.
This lawsuit serves as a reminder of the importance of responsible management of retirement plans and the need for employers to carefully consider the fees and services offered to plan participants. It also underscores the potential consequences of mismanagement and highlights the importance of closely monitoring and evaluating retirement plan options.
