ERISA Class Action Filed Against Adventist Health System

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A class action alleging violations of the Employee Retirement Income Security Act (ERISA) has been filed against Adventist Health System and its retirement board and retirement plan administrative committee. The 38-page suit claims a now-suspended “old” employee pension plan, which was shelved before the establishment of a new plan, was underfunded by $112 million even though the terms of the old plan’s suspension said the defendants “may be required to make future contributions to the Old Plan to fund any difference between the present value of the Old Plan benefits and the fair value of the Old Plan assets.” According to court records, the defendants reason for the severe underfunding was that the pension plans fell under the category of “church plans,” which are exempt from ERISA protections. Plaintiffs argue neither the old or new pension plans fit the “church plan” model because they were not funded or maintained by a church.