Mental Health Nonprofit On Hook For Pension Contributions

Law360 (July 20, 2020, 10:43 PM EDT) -- The Sixth Circuit has found that a Kentucky-based mental health services provider couldn't dodge its obligations to the state's public pension plan while its bankruptcy was pending, finding the nonprofit had a state law duty to contribute.

In a Monday decision, a three-judge panel said that Seven Counties Services Inc. had a statutory obligation to make contributions into the Kentucky Employees Retirement System during the pendency of its bankruptcy.

Writing for the panel majority, Circuit Judge Jane Branstetter Stranch said the Kentucky Supreme Court has found that the contributions to the system were mandated by statute rather than by contract....

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