Church pension plans

Pension Benefit Guaranty Corporation Director Joshua Gotbaum plans to step down from the post he has held the past four years.

WASHINGTON – On Monday, a New Jersey federal district court judge ruled that a pension plan established by religiously-affiliated hospital is not a “church plan” exempt from the protections of federal pension law. The Honorable Michael A.

On Monday, a U.S. District Court in New Jersey dismissed a motion by Saint Peter's Healthcare System, New Brunswick, N.J., to stop a lawsuit by pension plan participants challenging a recent ruling by the IRS that it was a church plan exempt from ERISA. The IRS determination, wrote Judge Michael Shipp, "conflicts with the plain text of the statute and is therefore unreasonable."

Pension shortfalls at some religiously affiliated hospitals, businesses and social service agencies are raising new alarms and spotlighting a largely overlooked gap in the law protecting Americans' retirement benefits.