Dignity Health to Pay More Than $100 Million in Church Plan Suit

California hospital system Dignity Health will pay more than $100 million to settle a lawsuit claiming it misused a religious exemption in federal benefits law to significantly underfund its pension plan.

The deal requires the hospital to put $50 million in the plan in 2020 and at least that much in 2021. Required contributions in the following three years will be based on recommendations from the plan’s actuaries, according to settlement papers filed June 27.

More than 91,000 people stand to benefit from the deal, which also requires certain plan changes intended to mimic the requirements of the Employee Retirement ...