Lawsuits allege fraud, conspiracy in insolvency of St. Joseph Health Services of Rhode Island plan

PROVIDENCE (RI)
Pension & Investments

June 20, 2018

By Hazel Bradford

Class-action lawsuits on behalf of participants in the insolvent St. Joseph Health Services of Rhode Island Retirement Plan were filed in state and federal courts in Rhode Island.

The 2,700 participants in the plan learned in August 2017 when it was placed into receivership that the plan had been inadequately funded for years, according to the lawsuit filed on behalf of Stephen Del Sesto, the receiver for the pension fund.

At the time, plan administrators asked the Rhode Island Supreme Court to approve immediate 40% across-the-board benefit cuts. The cuts have not yet been approved.

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