In a major victory for church-affiliated hospitals, the US Supreme Court overturned three appellate court rulings and decided unanimously that church-affiliated hospitals can maintain their pension plans as “church plans” exempt from the Employee Retirement Income Security Act of 1974, as amended (ERISA), regardless of whether a church actually established the plan. Impacted health systems, and especially their management, should evaluate how best to document and demonstrate their common religious bonds and convictions with the church.
Supreme Court Rules in Favor of Church-Affiliated Hospitals in Church Plan Litigation
By Joseph K. Urwitz and Mary K. Samsa on June 8, 2017
Posted In Employee Benefits, Retirement Plans
Tags: Advocate Health Care et al. v. Stapleton Maria et al, and Dignity Health et al. v. Rollins Starla, certiorari, church plan provisions, church plans, church-affiliated hospitals, DOL, Employee Retirement Income Security Act of 1974, ERISA, ERISA-exempt church plans, Internal Revenue Service, IRS, Justice Elena Kagan, nexus, PBGC, Pension Benefit Guaranty Corporation, pension plans, St. Peter’s Healthcare et al. v. Kaplan Laurence, US Courts of Appeals for the Ninth Circuit, US Courts of Appeals for the Seventh Circuit, US Courts of Appeals for the Third Circuit, US Department of Labor, US Supreme Court
Joseph K. UrwitzJoseph (Joe) K. Urwitz focuses his practice on employee benefits, executive compensation and Employee Retirement Income Security Act (ERISA) fiduciary matters. He advises clients on a wide range of issues, including fiduciary duties and prohibited transactions, employee benefit matters arising in mergers and acquisitions, benefits issues unique to nonprofit entities, deferred compensation arrangements, equity award and bonus plan design, employment and severance arrangements, and qualified plan work. Read Joe Urwitz's full bio.
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