On Sept. 21, Justice Anthony Kennedy granted the San Francisco-based health system a reprieve from making its employee pension plans compliant with the federal Employee Retirement Income Security Act until court justices decide whether to hear the system’s appeal.
The move will effectively halt a lower court’s decision from taking effect. Earlier this year, a federal appeals court ruled Dignity Health’s employee pension plan did not meet criteria to be considered a “church plan” and so must comply with federal protections for workers under ERISA.
Dignity Health is among three faith-based health systems facing lawsuits over noncompliance with federal employee pension regulations, including Advocate Health Care Network in Downers Grove, Ill., and St. Peter’s Healthcare System in New Brunswick, N.J.
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