St. Joseph’s Hospital & Medical Center & Subsidiaries

Garbaccio v. St. Joseph’s Hospital & Medical Center & Subsidiaries, Case No. 16-2740
United States District Court for the District of New Jersey

Case Overview

Plaintiffs alleged that St. Joseph’s Hospital & Medical Center & Subsidiaries (“St. Joseph’s”), a New Jersey non-profit hospital conglomerate, was improperly claiming that its defined benefit pension plan, the St. Joseph’s Hospital and Medical Center Pension Plan (the “St. Joseph’s Plan” or “Plan”), was exempt from the Employee Retirement Income Security Act of 1974 (“ERISA”), a federal law, pursuant to a statutory exemption intended for “church plans.”

Case Status

On March 6, 2018, the Honorable John Michael Vazquez issued an Order and Final Judgment approving a Settlement providing for a cash contribution of $42.5 million to be paid to the Plan, as well as a corporate guarantee of accrued benefits under the Plan for a period of seven years, and significant non-monetary equitable consideration, in that current participants will receive certain ERISA-like financial and administrative protections for the next seven years. For additional information regarding the Settlement, please visit the Settlement website.

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