ERISA Lawsuit Settlements
In 2016, Providence Health & Services, a religiously affiliated hospital based in Renton, Washington, reportedly agreed to pay almost $352 million to resolve an ERISA class action settlement accusing it of underfunding its pension plan. The plaintiffs claimed Providence Health improperly classified the pension as a “church plan” that was exempt from ERISA. These settlements are governed by ERISA law, which sets the standards for pension plan funding and fiduciary responsibilities.
According to the Providence Health ERISA class action lawsuit, Providence Health’s claim that its pension plan is a “church plan” is improper because it is not a church or a convention or an association of churches, and because the Providence Health pension plan was not established by a church or a convention or association of churches.
The plaintiffs allege that Providence Health failed to follow ERISA’s funding rules for the pension plan, failed to provide Class Members with pension statements, summary annual reports, and required notifications, failed to file annual reports with the Secretary of Labor, and failed to meet certain requirements regarding the trust that holds the pension’s assets.
Other examples of ERISA lawsuit settlements include:
- St. Francis Hospital, another religiously affiliated hospital in Hartford, Conn., also agreed to settle ERISA claims in May 2016. St. Francis Hospital reportedly agreed to pay $107 million in an ERISA settlement.
- Trinity Health, based in Livonia, Mich., reached a $75 million ERISA settlement.
- Ascension Health, based in St. Louis, Mo., agreed to pay $8 million to settle allegations it underfunded its pension plan.
Contact Bradley/Grombacher for a free case evaluation by reaching out to our employment law firm online or calling (866) 881-0403.