Dignity Health Can't Dodge $1.2B Pension Shortfall Claim

Law360, Los Angeles (December 13, 2013, 4:40 PM EST) -- A California federal judge declined Thursday to dismiss a putative class action accusing Dignity Health of underfunding its pension plans by $1.2 billion, saying it wasn't exempt under a "church-state" provision in the Employee Retirement Income Security Act.

Denying the defendants' motion to dismiss, U.S. District Judge Thelton E. Henderson said San Francisco-based Dignity wasn't shielded by the exemption because it is a health care organization whose mission is the provision of health care, not the administration of a benefits plan.

Dignity had contended that it...
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