Holy Cross Hospital
Butler v. Holy Cross Hospital, Case No. 16-5907
United States District Court for the Northern District of Illinois
Plaintiffs allege that Holy Cross Hospital (“HCH”), an Illinois non-profit corporation, is improperly claiming an exemption from the federal Employee Retirement Income Security Act (“ERISA”) for the Pension Plan for Employees of Holy Cross Hospital (the “Pension Plan”). Defendants claim that the Pension Plan is a “church plan” and thus is not subject to ERISA regulation.
Plaintiffs allege a number of reasons why the Pension Plan cannot properly claim an exemption from ERISA as a church plan, including that the entity that established the Plan is not a church or convention or association of churches, as ERISA requires. Plaintiffs allege that Defendants are violating ERISA, a federal law, by, among other things:
- failing to furnish Plaintiffs or any member of the proposed Class with Summary Plan Descriptions, Summary Annual Reports, Notifications of Failure to Meet Minimum Funding, Funding Notices, or Pension Benefit Statements;
- under-funding and failing to follow ERISA’s funding rules for the Plan;
- failure to establish a trust meeting the requirements of ERISA; and
- breaching their fiduciary duty.
Further, Plaintiffs allege that the exemption from ERISA, as applied to the Pension Plan, is an unconstitutional violation of the Establishment Clause.
On June 29, 2017, the Honorable Manish S. Shah granted the Motion for Final Approval of Settlement Agreement.