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Dignity Health Must Face $1.8 Billion Pension Underfunding Suit

Sept. 7, 2018, 4:12 PM

California hospital system Dignity Health must defend claims that it allegedly misused a religious exemption in federal benefits law to underfund its pension plan by more than $1.8 billion.

A federal judge in California Sept. 6 refused to dismiss, for the most part, the long-running case against the hospital, which in 2016 went all the way up to the U.S. Supreme Court. The latest ruling against Dignity Health comes after the workers amended their lawsuit following their 2017 defeat in the Supreme Court, which largely upheld how the hospitals treated their pension plans.

The ruling is an early victory...

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