CentraCare Health System $800,000 ERISA Settlement

If you were a participant in the CentraCare Health System Retirement Plan or the CentraCare Health System 403(b) Plan at any time from June 13, 2016, through May 17, 2024, you may be eligible to claim an award from a class action settlement.

CentraCare Health System has agreed to pay $800,000 to settle a class action lawsuit for alleged violations of the federal Employee Retirement Income Security Act of 1974 (ERISA) by failing to comply with their fiduciary duties under ERISA to the Plans and to the Plans’ participants in the management, operation, and administration of the Plan.

Who Can Claim an Award?

To be eligible to claim an award, you must have been a participant in the CentraCare Health System Retirement Plan or the CentraCare Health System 403(b) Plan during the period from June 13, 2016, through May 17, 2024. This includes all participants and beneficiaries of the Plans within this timeframe. The official settlement website has identified you as a Class Member based on the records maintained by the Plans.

Class Members are divided into two categories:

• Current Participants: Those who still have an active account in one or both Plans.
• Former Participants: Those who no longer have an active account in either of the Plans.

What Awards Can Class Members Claim?

The settlement provides monetary payments to participants. The total settlement amount is $800,000, from which deductions will be made for settlement-related expenses, including attorneys’ fees, case contribution awards, and administrative costs. The remaining amount, known as the Net Settlement Amount, will be distributed to Class Members.

Class Members will receive their share of the Net Settlement Amount based on their quarter-end account balances during the Class Period. The settlement administrator will calculate each Class Member’s proportional share by dividing the sum of their quarter-end account balances by the sum of all Class Members’ quarter-end account balances. This proportional share will then be multiplied by the Net Settlement Amount to determine the payment amount.

• Current Participants: Payments will be deposited into their Plan accounts.
• Former Participants: Payments will be sent by check unless they submit a Former Participant Claim Form to receive a rollover distribution to an eligible retirement account.

For example, if the Net Settlement Amount is $600,000 and a Class Member's quarter-end account balance is $10,000 while the total of all Class Members' quarter-end balances is $1,000,000, the Class Member's Entitlement Percentage would be 1% ($10,000 / $1,000,000). Therefore, their share of the Net Settlement Amount would be $6,000 (1% of $600,000).

Is Proof Required to Claim the Reward?

Not applicable. Claimants do not need to proactively provide proof they are a class member. The Settlement Administrator already has the necessary information.

How to Claim Your Award

To claim your award, you can file a claim online through the online claim form. Alternatively, you can mail the completed Former Participant Claim Form to:

Schave v CentraCare Health System, et al.

c/o Atticus Administration

PO Box 64053

St. Paul, MN 55164

If you are a Former Participant and wish to receive your settlement proceeds as a rollover distribution, you must submit the Former Participant Claim Form by August 12, 2024.

Submitting a Claim

Follow these steps to submit a claim:

1. Visit the online claim form.
2. Enter your Claimant ID and other required information.
3. Submit the form online or mail the completed form to the address provided.

How do I Get Paid?

Current Participants will receive their payments directly into their Plan accounts. Former Participants will receive their payments by check unless they submit a claim form to receive a rollover distribution.

Settlement Fund Breakdown

The total settlement amount is $800,000. This amount will be used to cover various expenses, including:

• Attorneys’ fees: One-third of the Gross Settlement Amount plus litigation expenses.
• Case contribution award to the class representative: Not to exceed $4,000.
• Administrative costs and taxes.

The remaining amount, known as the Net Settlement Amount, will be distributed to Class Members based on their proportional share of the quarter-end account balances.

Important Dates

• Deadline to File a Claim: August 12, 2024
• Final Approval Hearing: September 26, 2024

When will Awards be Paid?

Awards will be paid after the final approval hearing and once the settlement is approved by the Court.

Why is There a Class Action Settlement?

The lawsuit was filed against CentraCare Health System for allegedly violating ERISA by failing to comply with their fiduciary duties in managing, operating, and administering the Plans. The settlement concerns the management, operation, and administration of the CentraCare Health System Retirement Plan and the CentraCare Health System 403(b) Plan. The settlement allows the parties to avoid the costs and risks of further litigation while providing compensation to the affected participants.

What Happens Next?

The next steps include the final approval hearing on September 26, 2024, where the Court will consider any objections and decide whether to grant final approval of the settlement. If approved, the settlement proceeds will be distributed to eligible Class Members.