To: All Participants, Retirees and Beneficiaries of the Singing River Health System Employees’ Retirement Plan and Trust

Dear Plan Participant,

I hope this letter finds you well. I wanted to give you an update regarding the hearing that took place yesterday in Judge Bell’s Chancery Court.

First, it is important to remember the difference between the Chancery Court and the Federal Court: The Fairness Hearing in January in Judge Guirola’s Federal Court was an important step in the litigation surrounding the claims against the Hospital regarding the funding of the Plan and the settlement that has been proposed. That matter, as you may recall, now again rests with the 5th Circuit Court of Appeals. I am hopeful that we may know more about the status of the settlement this Summer.

The Chancery Court and Judge Bell oversee the Plan itself, including the administration and the oversight of how benefits are paid to you. Judge Bell has no authority over the hospital or over the litigation regarding the proposed settlement. It was through this court that I was appointed to my duties as Special Fiduciary.

The hearing yesterday in the Chancery Court was a result of Judge Bell’s “Order to show cause”. That order is posted here on this website – as is the report that I made to the court yesterday.
Judge Bell was clear in his order and at the hearing that he was looking for options and recommendations about what actions can be taken to preserve the fund and sustain the Plan. As I noted in a previous letter, the Court is anxious to begin the necessary steps and making adjustments to the plan, so that the fund can be preserved for the benefit of all participants for the long term.
Knowing this, I prepared my report and gave some possible suggestions and ideas in my testimony. I purposely did not release my report ahead of time because I wanted Judge Bell to be the first to see it and I wanted the opportunity to talk about my ideas at the hearing before they were made public. You can now read them for yourself if you would like.

During the hearing, some additional questions were raised. I will be doing additional research so that I can comment on how the Plan’s investments and investment positions compare with other similarly sized public plans. At the end of the hearing, Judge Bell thanked me for my efforts. He also authorized me to go ahead with my suggestion to post “Requests for Proposals” for the possibility of changing some of the Plan’s service providers. Specifically, I will be looking at the Plan’s administrator, actuary, auditor, custodian, and investment managers. I’ll be looking for ways to increase service quality and decrease expenses.
With these goals in mind, one of my suggestions is for my firm to take over the actuarial and administrative services of the Plan. I would like to see the Plan save money by using a firm that runs under my direct oversight. Judge Bell very prudently ordered that these services be put out to bid as well. My firm will compete for this work along with any other firms who may be able to offer these services.

Lastly, and I am certain most importantly to everyone, regarding changes to the benefits provided by the Plan: Judge Bell has ordered all parties to submit any additional comments or ideas to him within 2 weeks. He indicated that he will accept comments and ideas after 2 weeks, but that by mid-April, he wants to have enough information to make a decision as to how the Plan might be amended and benefits reduced in order to extend the life of the fund.

You can read for yourself the suggestions I made to him. I have offered to analyze the impact of other ideas that may be brought to the table. I want Judge Bell to have the best information he can possibly have as he makes these very difficult decisions.

It was clear to me that Judge Bell understands the situation and that he does not take this responsibility lightly. I hope I have also made it clear to you that I take my duties equally as seriously and that no actions will be taken casually.

Again, I encourage you, please do not speculate, or allow others to speculate for you, as we move forward. I will keep you posted on everything as it happens.

If you have ideas, comments or concerns, please share them with me. The best way to reach me is via e-mail at traci@etaros.com.

I am, and will continue to be, working for you.

Sincerely,

Traci M. Christian, EA, MAAA, FCA, MSPA
Special Fiduciary
Singing River Health System Employees’ Retirement Plan and Trust

PDF version of this letter can be downloaded here.

Other Messages from the Special Fiduciary.