SCOTUS explains how the organizations are exempt from the Employee Retirement Income Security Act (ERISA) which protects workers with private employer pension plans.
Under ERISA, employers must fully fund their pensions and obtain coverage through the Pension Benefit Guaranty Corporation. Faith-based organizations such as churches have always been exempt. The controversy started when employees of the faith-based health systems alleged the employers were not entitled to the exemption. Justice Kagan speaking for the court disagrees. "We conclude that the hospitals have the better of the argument." If the decision had gone the other way St. Peter's, Dignity, and Advocate were looking at a pension fund deficit of four billion
Under ERISA, employers must fully fund their pensions and obtain coverage through the Pension Benefit Guaranty Corporation. Faith-based organizations such as churches have always been exempt. The controversy started when employees of the faith-based health systems alleged the employers were not entitled to the exemption. Justice Kagan speaking for the court disagrees. "We conclude that the hospitals have the better of the argument." If the decision had gone the other way St. Peter's, Dignity, and Advocate were looking at a pension fund deficit of four billion