Dignity Health agrees to $100M settlement in pension case

Dignity Health has agreed to pay $100 million to settle a proposed class-action lawsuit alleging the San Francisco-based health system used a religious Employee Retirement Income Security Act exemption it wasn’t entitled to, according to LawyersandSettlements.com.

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Dignity Health allegedly used the religious exemption to underfund its pension plan by $1.5 billion. Under the proposed settlement, Dignity would add $50 million in retirement plan funding in 2020 and 2021.

The settlement also requires Dignity to fund the pension plan until 2024 and prohibits the health system from reducing accrued benefits because of a plan merger or amendment for 10 years, according to the report.

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