A judge has signed off on the $107 million settlement Hartford, Conn.-based St.FrancisHospital inked earlier this year to settle a lawsuit alleging it mismanaged its pension plan, according to the Connecticut Law Tribune.
St.FrancisHospital, part of Livonia, Mich.-based Trinity Health, entered into the settlement in May. The settlement resolved allegations brought by a group of St. Francis workers who argued officials improperly classified the hospital's pension as a "church plan" exempt from the federal Employee Retirement Income Security Act. ERISA requires pension plans to have adequate funding to pay their promised benefits. The lawsuit alleged the misclassification resulted in the pension being underfunded by $139 million.
To resolve the workers' allegations, Saint Francis will pay the $107 million over 10 years. Additionally, the hospital will guarantee the pension fund for 15 years and pay $800,000 in attorney fees and $2,000 to the lead plaintiff in the case, according to the Connecticut Law Tribune.
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