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Religious exception for church-related pensions takes a hit

A district court judge rules that a plain reading of the religious ERISA exception makes it clear that only church-maintained plans can be free of ERISA dictates.

By Dan Cook | Updated on January 27, 2014
Armantina Pelaez, a former crisis counselor at St. Mary’s Hospital, in Paterson, N.J., stands in Paterson's Saint Paul's Episcopal Church. In early 2011, St. Mary’s acknowledged the hospital had not put aside any money for their pensions in more than a decade. (AP Photo/Mel Evans)

When is a religious entity permitted to dodge the letter of the law with respect to pensions? Most of the time, according to traditional interpretations of those laws.

That status has long frustrated plaintiffs’ attorneys, because it has provided cover to religiously affiliated hospitals and other “businesses” whose plans don’t meet ERISA standards.

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Dan Cook

Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.

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