Bon Secours Health System, Inc.

Hodges v. Bon Secours Health System, Inc., Case No. 16-1079
United States District Court for the District of Maryland

Case Overview

Plaintiffs allege that Bon Secours, a Maryland non-profit healthcare corporation with operations in Kentucky, Florida, Maryland, New York, South Carolina, and Virginia, is improperly claiming an exemption from the federal Employee Retirement Income Security Act (“ERISA”) for the seven Bon Secours defined benefit pension plans, including, but not limited to, the Memorial Regional Medical Center Pension Plan (collectively, the “Bon Secours Plans” or the “Plans”). Defendants claim that the Bon Secours Plans are “church plans” and thus are not subject to ERISA regulation.

Plaintiffs allege that Defendants are violating ERISA, a federal law, by, among other things:

  • failing to furnish Plaintiffs or any member of the proposed Class with Summary Plan Descriptions, Summary Annual Reports, Notifications of Failure to Meet Minimum Funding, or Funding Notices;
  • under-funding and failing to follow ERISA’s funding rules for the Plans;
  • failing to file annual reports with respect to the Plans with the Secretary of Labor; and
  • breaching their fiduciary duty.

Further, Plaintiffs allege that the exemption from ERISA, as applied to the Bon Secours Plans, is an unconstitutional violation of the Establishment Clause.

Case Status

On December 21, 2017, the Honorable Richard D. Bennett issued the Order and Final Judgment with respect to the Settlement.

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