Pension Plans Shorted $438M By Catholic Health East: Suit

Law360, New York (March 29, 2013, 3:21 PM EDT) -- Health care system Catholic Health East was hit with a proposed class action Friday alleging the Pennsylvania-based nonprofit has underfunded pension plans for 60,000 employees by more than $438 million, in violation of the Employee Retirement Income Security Act.

The suit contends Catholic Health East has improperly classified the pension plans as “church plans,” which are exempt from some ERISA protections that regulate the value of those plans. The plaintiffs argue that the health system isn't a church or part of a convention or association of...
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