Civil Plaintiff

Prospect CharterCare to Pay $27M of St. Joseph Health Pension Fund Settlement

Participants in the underfunded St. Joseph Health Services of Rhode Island Retirement Plan, Providence, have reached a $30 million settlement agreement in a series of lawsuits against the hospital’s former owner and plan actuaries.

The proposed settlement calls for the parent company, Prospect CharterCare, to contribute $27 million to the pension fund, with another $3 million paid by the plan’s former actuarial firm and other defendants.

Litigation against the Catholic Diocese of Providence, which refused to participate in settlement talks, will continue.

The original 21-count lawsuit, which has since been amended, claimed that while St. Joseph’s Health Services was responsible for the plan, it promised participants that it was making all contributions but then stopped making them. Other charges alleged in the lawsuits were that the defendants falsely claimed it was a church plan exempt from the Employee Retirement Income Security Act and that the sale of the hospitals was approved by state regulators under fraudulent circumstances.

Read the source article at Pensions & Investments

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