Bon Secours Agrees to $98M Settlement in Church Pension Suit

Bon Secours Health System Inc. will pay $98.3 million to settle claims that it underfunded its pension plans by wrongly claiming a religious exemption from federal pension law (Hodges v. Bon Secours Health Sys., Inc., D. Md., No. 1:16-cv-01079-RDB, motion for settlement approval filed 5/31/17).

The deal, announced in court papers filed May 31, requires the hospital to contribute $98 million to its pension plans over a seven-year period. This payment represents the “total amount” of plan underfunding at the time of the settlement, according to the filing. The hospital also agreed to pay $300,000 to 530 employees ...