The Bermuda Hospitals Board has been told it has been overpaying the managers and advisors of its pension fund, has learned.

Pension consultant Al Kiel from consultants Morneau Sobeco reportedly told BHB chiefs that because of duplication in duties, the fees and commissions paid to administrators of the hospital pension fund ? said to have been some $800,000 since 2000 ? were too high for a fund of its size.

This was one of the issues discussed by who according to a source handed a report on the hospital pension fund to the Hospitals Board earlier this week.

Mr. Kiel was hired by the BHB to probe concerns over the management of the $40 million fund of more than 1,000 hospital workers.

It is understood the new arrangement led to some $800,000 in commission fees, performance fees and management fees being charged by third parties including administrators Emerald Financial Group after they took over almost five years ago.

The defined contribution plan allowed employees to pick investment options and leave it to market forces to decide the final pay-out.

Retired hospital workers were reportedly forced to take jobs in their senior years because of shortfalls in their fund.

The slow growth rate of the fund sparked additional concern from members who approached the BPSU and demanded the Pension Commission investigate.

It is understood hospital staff even called Morneau recently wanting to know why no one in authority could get the trading history which would show what had happened to the funds.

?Employees feel they had a right to know how their money, by way of stocks and mutual funds, has been performing, especially as it appears there was a high percentage of performance fees being charged to the plan,? the source said.

?The staff would like to have answers ... no one is blaming anyone, because no one can answer these questions except Mr. Kiel, who supplied a very comprehensive report, following an agreement by the board, but only because BPSU had insisted on it,? the source said.

The source last night said Mr. Kiel was in Bermuda on Monday and Tuesday and had met with the board to share his findings.

Adding that the Hospitals Board had been very ?candid? about sharing the information because of possible liability.

It?s understood Mr. Kiel spoke about conflict of interest, accountability and the fee structure ? which appeared to have charged too much for the size of the plan.

As well as administration issues, roles and responsibilities, transparency, appropriate skills, knowledge and resources, due diligence, investment policies, plan cost structure and education of members.

Hospital staff are still waiting on a report by National Pension Commission.

earlier this week, Pension Commission head Peter Sousa told ZBM News that an investigation was underway and it had not yet found any wrongdoing. Mr. Sousa had said he was expecting a copy of the Morneau Sobeco report from the Hospitals Board.

BPSU general secretary Edward Ball could not be reached for comment last night, while Mr. Sousa did not return calls to .

A hospital spokeswoman said a statement had been issued earlier this week and could not offer any additional comment.