News Archive

"Peterson argued that the plan qualified as a church plan because NDHCCI is a church-affiliated entity, thereby making its employees 'employees of a church' under Section 1002(33)(C)(ii) and thus deeming NDHCCI itself a church for plan purposes. However, the Court rejected this interpretation ... [emphasizing] the plain text and legislative intent of ERISA[.]" [Peterson v. Lincoln Nat'l Life Ins. Co., No. 23-40097 (D. Mass. Mar. 31, 2025)]  MORE >>

"Clergy and church employees of the African Methodist Episcopal Church, Nashville, Tenn., have secured a $40 million settlement from Newport Group, the third-party administrator of church retirement plans in a complex, long-running lawsuit against multiple defendants[.]" [Carmichael v. Harris, No. 22-1127 (W.D. Tenn. proposed settlement Mar. 4, 2025)]  MORE >>

"The church argues that an employer who purchases a no-abortion health plan still 'indirectly facilitates' abortion access. But [the Ninth Circuit] rejected that argument as well, writing: 'The general disapproval of the actions that others might decide to take does not create standing, even when some tenuous connection may exist between the disapproving plaintiff and the offense-causing action.' " [Cedar Park Assembly of God of Kirkland, Washington v. Kreidler, No. 23-35560 (9th Cir. Mar. 6, 2025)]  MORE >>

"Plan administrators and counsel should review key issues with respect to employee benefit plans and executive compensation arrangements, confirm actions to be taken before the end of 2024, and focus on what to expect for 2025. [These checklists] address plan amendments, notices, and other considerations for qualified retirement plans, welfare plans, and stock-based and performance-based plans."

• Plan Administrators
• Corporate Counsel
• Plan Administrators of Governmental and Church Plans
• General Counsel of Tax-Exempt and Governmental Entities

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"In part, the district court based its finding on a distinction that appears not to have been previously addressed within the Eleventh Circuit: whether the 'government plan' exemption from ERISA applies to a pension plan that was 'established or maintained' by a government entity (as defined in ERISA, Title I), as opposed to requiring that the plan be both established and maintained by a government entity to qualify for the exemption (as defined in ERISA, Title IV). The district court held that because this matter involved ERISA, Title I, the plan need only have been 'established' by a government entity to qualify for the exemption. Because the plan was established by a government entity, ERISA did not apply." [The Cobb Foundation v. Hart County, Georgia, No. 24-0053 (M.D. Ga. Aug. 14, 2024)]  MORE >>

"This alert provides a high-level overview as to the scope of ERISA's legal requirements and the church plan exemption and discusses certain considerations faith-based organizations may take into account when determining whether to 'opt-in' to ERISA's regime and maintain an Electing Church Plan."  MORE >>

"While the exceptions for government and church plans serve important policy objectives, they also present challenges and potential consequences."

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11 pages. "This issue brief discusses the broad range of church plans and practices. It discusses: [1] The impact on a participant of being in a church plan when the ERISA protections and provisions for U.S. tax-qualified single or multiemployer pension plans generally do not apply; [2] Governance and fiduciary responsibilities, including plan audit considerations; [3] Differing funding sources and varying approaches to funding benefits; and [4] How the bankruptcy or termination of an underfunded church plan exposes plan participants to potentially more harm than if the plan were covered by PBGC."

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"Church plans are generally exempt from most ERISA requirements, including rules to fund plans, disclose information, and insure benefits.... This report addresses [1] data available on church plans and plan administration, [2] federal and state roles regarding church plans, and [3] expected outcomes for participant benefits from church plan litigation."

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"The [district court] applied a three-step analysis developed by the Tenth Circuit following the Supreme Court's ruling, asking whether the employer plan sponsor was associated with a church, whether the plan was maintained by a principal-purpose organization, and whether the principal-purpose organization was associated with a church.... The court rejected the argument that only the entity with the authority to amend and terminate the plan 'maintains' a plan[.]' [Kaplan v. Saint Peter"s Healthcare System, No. 13-2941 (D.N.J. Feb. 17, 2023)]  MORE >>

"The African Methodist Episcopal Church retirement plan and third-party administrators had federal ERISA charges from a class action retirement complaint dismissed by a Tennessee federal judge's ruling, but they still face state charges.... The lawsuit alleged claims under Tennessee law and 'in the alternative,' claims under [ERISA], against the denomination, church officials, the third-party service providers to the plan and others[.]" [In re: AME Church Employee Retirement Fund Litigation, No. 22-3035 (W.D. Tenn. Mar. 17, 2023)]

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"SECURE 2.0 ... updated 403(b) plan rules to conform more closely with 401(k) plan rules, and made a number of key changes specific to 457(b) plans (although many of those changes only apply to governmental 457(b) plans). Further, church plans that do not elect to be subject to ERISA were also impacted by a number of the changes made in SECURE 2.0."  MORE >>

"Retirement plan sponsors affiliated with a religious entity won in court after a federal district judge ruled that the Saint Peter's Healthcare System of New Jersey qualifies for the church-plan exemption under [ERISA] ... The original complaint in 2013 argued that Saint Peter's retirement plans were not church plans under the technical church-plan rules because of organizational and other similar matters." [Kaplan v. Saint Peter's Healthcare System, No. 13-2941 (D.N.J. Feb. 17, 2023)]

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"A U.S. District Court judge in Rhode Island ruled that the St. Joseph Health Services of Rhode Island Retirement Plan does not have a church-plan exemption from ERISA because it is no longer affiliated with a relevant sponsor....[The judge] denied the remaining defendants motion to dismiss, and ordered the parties to return to mediation." [Del Sesto v. Prospect CharterCare, No. 18-328 (D.R.I. Sept. 13, 2022)]  MORE >>

"The case, based on a lawsuit filed by the churches in 2015, weighed their claims of religious discrimination against the state's position that abortion services represent basic care that should generally be covered by all health care plans offered in the state." [Foothill Church v. Watanabe, No. 15-2165 (E.D. Cal. Aug. 25, 2022)]

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"Members of the African Methodist Episcopal Church have filed a consolidated class action complaint alleging retirement plan fiduciary breaches under [ERISA].... The complaint follows a proposed class action lawsuit against named plan fiduciaries that was filed earlier this year.... Plaintiffs allege that the church plan is an ERISA plan because the summary plan document clearly states that it is." [In Re: AME Church Employee Retirement Fund Litigation, No. 22-3035 (W.D. Tenn. complaint filed Aug. 19, 2022)]  MORE >>

"The New York attorney general [has] filed a lawsuit to help more than 1,100 former employees of St. Clare's Hospital in Schenectady, New York, recover lost retirement benefits because of alleged 'negligent and intentional actions' by the Roman Catholic Diocese of Albany.... Of those 1,100+ who lost their retirement benefits, 650 retirees lost all their pension rights and nearly 450 retirees received a single payment equal to 70% of their pension's value."  MORE >>

"The African Methodist Episcopal Church, among the largest U.S. Protestant denominations, has suspended retirement payments and discussed steep cuts to the savings of its ministers amid an investigation into missing funds ... The church said federal law enforcement and an outside law firm are investigating 'a possible financial crime' involving funds managed by its retirement-services department covering about 5,000 participants, including ministers and bishops."

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"Chapters in this series will focus on three core principles church plans often look to balance: Benefit adequacy, benefit equity, and benefit security. [The series] will discuss each of these principles in more detail, and how they interact with each other. [This first chapter discusses] pension plans in general, including their history and unique considerations for church plans."

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"This chapter explores how an employer offering multiple benefits as part of total retirement income planning can lend itself to benefit adequacy."

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"[This] chapter explores the benefit security of a church plan following these topics and issues: [1] Funding policy; [2] Has the funding policy been checked lately? [3] What are some ways to calculate our contribution? [4] Is it time to make a change? [5] Other considerations."  MORE >>

"This chapter explores what it means to have church plan status and how minimum standards may play a part in establishing a balance of the core principles of benefit adequacy, benefit equity, and benefit security."

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"A recent slip opinion in a case involving a church plan maintained by a hospital in upstate New York reminds us that being a non-ERISA plan brings its own set of challenges because state law is not preempted. In particular, the case illustrates that, if a church plan starts to fail to pay benefits, its sponsor -- as well as related entities such as the church it is controlled by or associated with -- may find themselves subject to various pension-related claims under state law." [Hartshorne v. The Roman Catholic Diocese of Albany, New York, 2021 NY Slip Op. 07329 (3rd App. Div., Dec. 23, 2021)]

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"The Appellate Division of state Supreme Court rejected an attempt by the Roman Catholic Diocese of Albany and the St. Clare's Corporation to dismiss the pensioners' lawsuit against them.... Because the fund was church-affiliated, it was exempt from federal insurance requirements, leaving no safety net for the pensioners when the money ran out. The diocese has rejected responsibility for causing the crisis or paying to resolve it." [Hartshorne  v. The Roman Catholic Diocese of Albany, New York, 2021 NY Slip Op. 07329 (3rd App. Div., Dec. 23, 2021)]  MORE >>

"Dignity Health will contribute $50 million to the plan for the 2020 plan year and will contribute either another $50 million or the amount of the minimum contribution recommendation calculated by the plan's actuaries for the 2021 plan year, if it's greater than $50 million. For calendar years 2022, 2023 and 2024, Dignity Health has agreed to make contributions to the plan in the amount of the minimum contribution recommendation calculated by the plan's actuaries." [Rollins v. Dignity Health, No. 13-1450 (N.D. Cal. Oct. 19, 2021)]  MORE >>