A Mississippi health system has agreed to pour $150 million into its pension system over the next four decades to settle class-action lawsuits alleging it underfunded the plan.
Singing River Health System will pay into the plan over 35 years, according to the settlement, to make up for the cash it didn't contribute to the plan from 2009 to 2014. The system stopped contributing because of challenges caused by the recession, reductions in Medicaid and insurer reimbursements, large capital expenditures and accounting errors, the system told the court.
Attempts to reach Singing River were unsuccessful. The public health system has two hospitals, Singing River Hospital in Pascagoula and Ocean Springs (Miss.) Hospital.
Retirees and current employees had filed more than 200 lawsuits against the system after it announced in 2014 that it had not contributed to the plan since 2009 and that it planned to terminate and liquidate it. Employees had contributed 3% of their salaries into the plan.
Under the settlement, if the system wants to change or terminate the plan, it will first have to get approval from an independent fiduciary and the Chancery Court in Mississippi, said Steve Nicholas, a partner at Cunningham Bounds, who represented the employees and retirees in the class action.
