St. Peter’s University Hospital in New Brunswick, N.J., has been granted leave for an interlocutory appeal to the U.S. Court of Appeals for the Third Circuit on whether a $70 million shortfall in its pension plan is allowed under a religious exemption to the Employee Retirement Income Security Act.
U.S. District Judge Michael Shipp of the District of New Jersey granted the hospital’s motion to certify an appeal of his March 31 decision, which denied its motion to dismiss a putative class action by plan participants and beneficiaries. Shipp said the case presents a question of first impression in the Third Circuit: whether a nonprofit health-care corporation that is controlled by or associated with a church is entitled to the so-called church plan exemption from ERISA.
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