A recent U.S. Supreme Court decision in favor of pension-law appeals by three religiously affiliated hospital systems was deemed a credit positive for such entities. However, further litigation is likely.

Following oral arguments in March in three cases challenging health care organizations’ church plan status, the U.S. Supreme Court found plans maintained by principal-purpose organizations qualify as “church plans.” However, it did not rule that the hospitals in these cases were principal-purpose organizations. 

PRC Policy Analyst Jane Smith testified before the ERISA Advisory Council on the improvements to the effectiveness of retirement plan disclosures to participants and beneficiaries. In her testimony, Jane noted that plan disclosures to participants are often confusing and written in technical language that is difficult for participants to understand. 

Three religious-affiliated, nonprofit hospital systems won reprieves from multimillion-dollar class actions Monday in the U.S. Supreme Court. But that relief may not be long-lasting.