The employee retirement plans of religious-affiliated nonprofits are exempt from the protections and requirements of the federal pension law, a unanimous U.S. Supreme Court ruled on Monday.

The decision was a blow to multimillion-dollar class actions that seek to hold those plans liable for violating the federal law.

The high court, led by Justice Elena Kagan, rejected arguments from plaintiffs firms that the Employee Retirement Income Security Act, known as ERISA, required a church to have originally established a “church plan” in order to qualify for an exemption from the employee-retirement law.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Marcia Coyle

Marcia Coyle, based in Washington, covers the U.S. Supreme Court. Contact her at [email protected]. On Twitter: @MarciaCoyle