SSM Health, Others Hit with ERISA
Last Updated on May 8, 2018
Feather v. SSM Health et al
Filed: October 26, 2016 ◆§ 4:16-cv-01669-HEA
The Pension Committee for The Retirement Plan for SSM Health Employees is facing a class action lawsuit.
The Pension Committee for The Retirement Plan for SSM Health Employees is facing a class action lawsuit that claims the multi-state healthcare conglomerate failed to properly maintain employees’ pension plans under the Employee Retirement Income Security Act (ERISA). The 58-page complaint was filed on behalf of the participants of three pension plans sponsored by the defendant:
- The Retirement Plan for Employees of SSM Health Care System
- The Retirement Plan for Employees of Certain Illinois Entities Related to SSM Health Care
- The Retirement Plan for Employees of St. Mary’s Hospital Centralia, Illinois
The lawsuit claims SSM Health disregards multiple ERISA provisions by underfunding the plans and claiming they’re exempt from ERISA protections because they are “church plans.” Plaintiffs argue that their plans do not meet this classification because they were not established by a church or an association of churches. In fact, plaintiffs say, SSM Health, a non-profit, has nothing to do with a church in any way.
Summarily, the suit claims SSM Health attempts to unlawfully operate its employee pension plans as “church plans” because such plans fall outside of ERISA protection in that they:
- Do not have to provide employees with information about benefits or investments
- Do not have to pay benefits fairly
- Do not need to be adequately funded
- Are not covered by the federal pension insurance program
The proposed class covers all participants and beneficiaries of the SSM Health employee plans.
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