Here’s an update on where we stand, to the best of our knowledge, in the Saint Peter’s case:
As you probably know, the case has been returned to the federal district court of New Jersey, after the Third Circuit in December 2015 denied Saint Peter's appeal, then in March 2016 denied a request to re-hear the case. Absent any new action from Saint Peter’s, the next task in the district court would be to resume the original lawsuit: legal discovery would begin, focusing on the extent of Saint Peter’s ERISA violations (e.g., underfunding the pension plan) so that remedial decisions/orders could be made to bring the plan back into compliance. Alas, none of this has happened.
Saint Peter’s has petitioned the Supreme Court to review their case — in the language of the Court, to grant certiorari (choose your favorite pronounciation). In the meantime Saint Peter’s has filed a motion with the district court to stay the proceedings there, pending the Supreme Court’s decision. The lawyers for the plaintiffs claim that the motion is procedurally improper because, among other things, the hospital cannot establish a reasonable probability that their argument will sway the Court. Remember, the Court's role is to resolve conflicting opinions in the appellate courts. Saint Peter’s has NO appellate court rulings they can cite to support their claim to the church-plan exemption, while the plaintiffs can now cite two appellate rulings supporting their arguments (the Saint Peter’s and Advocate decisions). The motion to stay seems clearly designed as a stalling action, to allow the possibility of a favorable ruling in another of the several similar cases now before the courts, and to allow the hospital to save money by continuing to operate the pension as a church plan.
At this point, we are waiting for the district court to rule on the motion to stay, or for the Supreme Court to decide whether to grant Saint Peter’s a hearing. The current Supreme Court term ends imminently, with the new term beginning in October, but (we believe) a decision could still be made during the summer recess.
The management of Saint Peter's University Hospital is using the church to exempt itself from the Federal safeguards that protect your retirement plan. For an introduction, see Your Pension At Risk.
