Southern Utah News Articles
Top Stories for December 23, 2009
Kane County Hospital could face financial illness
A bungled retirement plan, instituted in good faith by the Kane County Hospital in the 90’s, could have a huge impact on the hospital’s financial health and future.
Two employees have filed a proposed class action lawsuit in Salt Lake District Court against the hospital and several other entities. It claims the hospital did not properly fund their retirement program through a state agency, Utah Retirements Systems, as was required by law.
The pension plan was established in 1993, and the 401(k) program was administered by the John Hancock Life Insurance Company, which has also been named a defendant.
A class action lawsuit, if allowed by the judge, would have serious impact on the county and the hospital. Anyone who worked at least four years for the hospital – the time it took to become vested – could be eligible if it is ruled a class action.
The Internal Revenue Service has since allowed the hospital to roll the funds into a legitimate plan.