The 7th Circuit found a district court was hasty in granting summary judgment to the health care system before all discovery was obtained to prove or disprove the plaintiff’s arguments.
Tag: church plans
Both chambers of the State Assembly have passed legislation that would require religious organizations that manage pension plans to send regular updates on the financial health of the pensions to plan participants.
The Archdiocese says since it was ordered to pay $4.7 million to teachers whose pension plan was terminated, officials have seized assets from all Catholic entities in Puerto Rico, including those not covered by the plan.
The case made it to the Supreme Court, which ruled plans maintained by principal-purpose organizations can qualify as “church plans;” however, it did not rule that the hospital was a principal-purpose organization.
The case already made it once to the Supreme Court which helped to clarify what it means to be a “church plan” run by a principal-purpose organization under ERISA—but the underlying facts of the lawsuit are still being fought over in district court.
Since the Supreme Court decision about the definition of church plan under the Employee Retirement Income Security Act, the Internal Revenue Service has issued several private letter rulings concerning entities’ church plan status, including an organization with a 403(b) plan.
A newly filed challenge to St. Joseph Health Services of Rhode Island’s retirement plan claims the plan at some point failed to be a church plan, and entities administering or associated with the plan hid this to keep from adhering to funding rules as defined by ERISA.
The complaint alleges that at a certain point, the plan lost its church plan status as defined by ERISA and was required to adhere to ERISA funding rules.
Former committee members for the pension plan of St. Elizabeth Medical Center moved to have themselves dismissed from a lawsuit challenging the church plan status of the pension plan, but a federal judge declined to dismiss them from a count regarding funding of the plan.
“I work for a denominational church entity where ministers can exclude a portion of their compensation from taxable income as parsonage (housing) allowance.
“I work for a denominational church plan sponsor. Our plan permits contract exchanges (we have some inactive vendors in the plan to which we permit transfers to the active vendor), but not plan-to-plan transfers.
Panelists at the 2017 PLANADVISER National Conference discuss the state of litigation in the retirement plan industry and lessons learned by lawsuit filings and court decisions.
Many terms of the settlement agreement between St. Joseph’s Hospital and its pension plan participants are similar to provisions of ERISA.
The website offers digital tools, videos, tutorials and more to help plan sponsors in the tax-exempt field raise the retirement readiness of their participants.
Ascension has agreed to pay of the first $29.5 million of benefits that are distributable to settlement class members in the event trust assets attributable to the plan become insufficient to pay such benefits.