.png)
Participants in or beneficiaries of the Cambridge Health Alliance Partnership Plan at any time between Dec. 29, 2017, and Feb. 13, 2026, may be eligible to claim a cash payment from a class action settlement.
CHA General Services Inc. agreed to pay $595,000 to settle a class action lawsuit alleging it and its retirement plan committee breached fiduciary duties under the Employee Retirement Income Security Act. The lawsuit claimed the defendants allowed excessive administrative fees and imprudent investment options in the Cambridge Health Alliance Partnership 403(b) plan, potentially resulting in financial losses for plan participants and beneficiaries.
Who are the class members?
The class includes all participants in or beneficiaries of the Cambridge Health Alliance Partnership Plan at any time from Dec. 29, 2017, through Feb. 13, 2026.
How much is the ERISA payout?
The settlement amount is $595,000. Eligible class members will receive a pro rata share of the net settlement amount after deductions for court-approved attorneys’ fees, litigation costs, settlement administration expenses and service awards to the lead plaintiffs.
The calculation for each class member’s share is as follows:
- The settlement administrator will calculate each class member’s average account balance based on their annual-ending balances from Dec. 31, 2017, through Dec. 31, 2025.
- It will then total all class members’ average account balances.
- The administrator will calculate each class member’s share by dividing their average account balance by the total of all average balances then multiplying by the net settlement fund.
- If a class member’s calculated payment is less than $10, they will not receive a payment.
No action needed to receive payment
Class members do not need to file a claim to receive payment. If the settlement receives final approval and a class member is eligible, they will automatically receive a settlement payment.
Payout options
- CHA General Services will allocate shares to current participants with an active account directly to their plan account.
- The settlement administrator will send payments directly to former participants or those without an active account by check or another method it determines.
$595,000 settlement fund breakdown
The $595,000 settlement fund includes:
- Settlement administration costs: Up to $100,000
- Independent fiduciary and recordkeeper fees: Up to $25,000
- Attorneys’ fees: Up to $196,350
- Attorneys’ expenses: To be determined
- Service awards to class representatives: Up to $5,000 total ($2,500 each)
- Payments to eligible class members: The remainder of the fund
Important dates
- Final approval (fairness) hearing: May 12, 2026
When is the ERISA settlement payout date?
The settlement administrator will distribute payments after the court resolves any appeals and grants final approval to the settlement.
Why is there a class action settlement?
The class action lawsuit alleged CHA General Services Inc. and its retirement plan committee breached their fiduciary duties under ERISA by allowing excessive administrative fees and imprudent investment options in the plan.
The defendants denied all allegations but agreed to settle to avoid the cost, risk and disruption of further litigation.
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.svg)