Hospital To Shell Out $4M To Wrap Up Church Plan Suit

Law360 (April 11, 2019, 3:20 PM EDT) -- An Indiana hospital has agreed to a $4 million settlement to resolve a suit accusing it of underfunding its pension plan and then wrongly cutting back participants' benefits when the plan was terminated.

A group of current and former St. Anthony Medical Center employees on Wednesday asked an Illinois federal judge to give preliminary approval to the deal that would settle claims the hospital flouted the Employee Retirement Income Security Act when it reduced pension benefits 30% to 40%. The central issue in the case was whether the plan was properly classified as a so-called church plan, exempting it from certain...

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