War Memorial Hospital in Berkeley Springs, W. Va., must pay 15 former hospital employees $500,000 after a circuit court judge ruled the hospital changed the employees' retirement benefits to unduly use the $675,000 surplus toward a new hospital, according to a Morgan Messenger news report.
The former hospital employees filed the original lawsuit in June 2007. The complaint was in regards to a defined benefit plan the hospital adopted in 1972 to provide retirement benefits to employees. However, the hospital stopped that plan in 1987 and installed a defined contribution plan in its place, with the intention of using the surplus from the previous benefits plan to build a new hospital, according to the news report.
A circuit court judge presiding over the case ruled in favor of the employees in May 2009, saying the hospital had no right to the pension surplus. The hospital appealed that judge's decision, but it was upheld in the West Virginia Supreme Court of Appeals in June 2010. The hospital tried to have the ruling reviewed again, but that request was denied in Sept. 2010, forcing the hospital to surrender to the original circuit court ruling and pay the 15 former hospital employees.
The Morgan County Commission must share in paying some of the surplus' interest since the county government owned the hospital when the lawsuit was filed in 2007, according to a Herald-Mail news report. A second part of the lawsuit regarding the hospital's alleged breach of fiduciary duties is scheduled for July 11.
Read other coverage about compensation:
- Maine Hospital Cuts Four Administrators, Reduces Pay for Rest
- 5 Tips to Ensure Your Physician-Compensation Plan Doesn't Fail
- Albany Medical Center to Pay $4.5M to Settle Nurse Pay Lawsuit
The former hospital employees filed the original lawsuit in June 2007. The complaint was in regards to a defined benefit plan the hospital adopted in 1972 to provide retirement benefits to employees. However, the hospital stopped that plan in 1987 and installed a defined contribution plan in its place, with the intention of using the surplus from the previous benefits plan to build a new hospital, according to the news report.
A circuit court judge presiding over the case ruled in favor of the employees in May 2009, saying the hospital had no right to the pension surplus. The hospital appealed that judge's decision, but it was upheld in the West Virginia Supreme Court of Appeals in June 2010. The hospital tried to have the ruling reviewed again, but that request was denied in Sept. 2010, forcing the hospital to surrender to the original circuit court ruling and pay the 15 former hospital employees.
The Morgan County Commission must share in paying some of the surplus' interest since the county government owned the hospital when the lawsuit was filed in 2007, according to a Herald-Mail news report. A second part of the lawsuit regarding the hospital's alleged breach of fiduciary duties is scheduled for July 11.
Read other coverage about compensation:
- Maine Hospital Cuts Four Administrators, Reduces Pay for Rest
- 5 Tips to Ensure Your Physician-Compensation Plan Doesn't Fail
- Albany Medical Center to Pay $4.5M to Settle Nurse Pay Lawsuit