UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION LISA FEATHER, STANLEY BEIERMANN, and HOLLY PYATT, on behalf of themselves, and all others similarly situated, and on behalf of the SSM PENSION PLANS, Plaintiffs, v. SSM HEALTH CARE CORPORATION d/b/a SSM HEALTH, a Missouri Non-profit Corporation, SSM HEALTH CARE PENSION COMMITTEE, JOHN and JANE DOES 1-20, MEMBERS OF THE SSM HEALTH CARE PENSION COMMITTEE, each an individual, and JOHN AND JANE DOES 21-40, each an individual, Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) No. 4:16-cv-01669-HEA FIRST AMENDED COMPLAINT Case: 4:16-cv-01669-HEA Doc. #: 78 Filed: 09/06/17 Page: 1 of 68 PageID #: 761
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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF … · SSM Health to comply with ERISA and afford the Class all the protections of ERISA with respect to the SSM Pension Plans. In
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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
LISA FEATHER, STANLEY BEIERMANN, and HOLLY PYATT, on behalf of themselves, and all others similarly situated, and on behalf of the SSM PENSION PLANS,
Plaintiffs,
v.
SSM HEALTH CARE CORPORATION d/b/a SSM HEALTH, a Missouri Non-profit Corporation, SSM HEALTH CARE PENSION COMMITTEE, JOHN and JANE DOES 1-20, MEMBERS OF THE SSM HEALTH CARE PENSION COMMITTEE, each an individual, and JOHN AND JANE DOES 21-40, each an individual,
I. INTRODUCTION ........................................................................................................ 1
II. JURISDICTION AND VENUE.................................................................................... 5
III. PARTIES ..................................................................................................................... 6
A. Plaintiffs ........................................................................................................... 6
B. Defendants ........................................................................................................ 7
IV. THE BACKGROUND OF THE CHURCH PLAN EXEMPTION ................................ 8
A. The Adoption of ERISA .................................................................................... 8
B. The Scope of the Church Plan Exemption in 1974 ............................................. 9
C. The Changes to the Church Plan Exemption in 1980 ......................................... 9
V. SSM HEALTH ........................................................................................................... 11
A. SSM Health’s Operations ................................................................................ 11
B. The SSM Pension Plans .................................................................................. 15
C. The SSM Pension Plans Each Meet the Definition of an ERISA Defined Benefit Plan ....................................................................................... 17
D. Defendants Meet the Definition of ERISA Fiduciaries .................................... 17
1. Nature of Fiduciary Status ................................................................... 17
2. Defendants Are Each an ERISA Fiduciary ........................................... 19
E. The SSM Pension Plans Are Not Church Plans ............................................... 21
1. Only Two Types of Entities May Maintain a “Church Plan,” and SSM Health Is Neither ........................................................ 21
2. Even if the SSM Pension Plans Were Maintained by a Permissible Entity, They Would Nonetheless Fail to Satisfy Other Elements of the Church Plan Definition ..................................... 23
3. Even if the SSM Pension Plans Could Otherwise Qualify as “Church Plans” under ERISA Sections 3(33)(A) or (C)(i),
They Are Excluded From “Church Plan” Status under ERISA Section 3(33)(B)(ii) ................................................................. 25
4. Even if the SSM Pension Plans Could Otherwise Qualify as “Church Plans” Under ERISA, the Church Plan Exemption, as Claimed by SSM Health, Violates the Establishment Clause of the First Amendment of the Constitution, and Is Therefore Void and Ineffective ............................................................ 26
VI. CLASS ALLEGATIONS ........................................................................................... 27
A. Numerosity ..................................................................................................... 27
B. Commonality .................................................................................................. 27
C. Typicality ........................................................................................................ 28
D. Adequacy ........................................................................................................ 29
E. Rule 23(b)(1) Requirements ............................................................................ 29
F. Rule 23(b)(2) Requirements ............................................................................ 29
G. Rule 23(b)(3) Requirements ............................................................................ 30
VII. CAUSES OF ACTION ............................................................................................... 31
COUNT I ................................................................................................................... 31
(Claim for Equitable Relief Pursuant to ERISA Sections 502(a)(2) and 502(a)(3) Against All Defendants) ................................................ 31
COUNT II .................................................................................................................. 32
(Claim for Violation of Reporting and Disclosure Provisions Against Defendant Pension Committee and John and Jane Does 1-20, the Pension Committee Member Defendants) .................... 32
1. Summary Plan Descriptions ................................................................. 32
COUNT III ................................................................................................................. 35
(Claim for Failure to Provide Minimum Funding Against Defendant SSM Health) ....................................................................... 35
COUNT IV ................................................................................................................. 36
(Claim for Equitable Relief Pursuant to ERISA Section 502(a)(3) for Violation of ERISA Sections 203(e), 204(c)(3), and 205(g) Against Defendants SSM Health and Pension Committee) ......................................................................................... 36
COUNT V .................................................................................................................. 39
(Claim for Failure to Establish the Plans Pursuant to a Written Instrument Meeting the Requirements of ERISA Section 402 Against Defendant SSM Health) ................................................... 39
COUNT VI ................................................................................................................. 39
(Claim for Failure to Establish a Trust Meeting the Requirements of ERISA Section 403 Against Defendant SSM Health) ...................... 39
COUNT VII ............................................................................................................... 40
(Claim for Clarification of Future Benefits Under ERISA Sections 502(a)(1)(B) and 502(a)(3) Against Defendant Pension Committee) ......................................................................................... 40
COUNT VIII .............................................................................................................. 41
(Claim for Breach of ERISA Fiduciary Duties Against All Defendants) ......................................................................................... 41
1. Breach of the Duty of Prudence and Loyalty ........................................ 41
a. Knowledge of a Breach and Failure to Remedy ........................ 45
b. Knowing Participation in a Breach ........................................... 46
c. Enabling a Breach .................................................................... 46
COUNT IX ................................................................................................................. 47
(Claim for Declaratory Relief that the Church Plan Exemption, if Applied to the Plans, Violates the Establishment Clause of the First Amendment of the Constitution, and Is Therefore Void and Ineffective as to the Plans) .................................................... 47
COUNT X .................................................................................................................. 50
(Alternative Claim for Breach of Contract and Specific Performance Against Defendant SSM Health) ..................................... 50
COUNT XI ................................................................................................................. 53
(Alternative Claim for Unjust Enrichment Against Defendant SSM Health) ................................................................................................ 53
COUNT XII ............................................................................................................... 55
(Alternative Claim for Breach of Common Law Fiduciary Duty Against the Pension Committee) .......................................................... 55
VIII. PRAYER FOR RELIEF ............................................................................................. 57
1. Defendant SSM Health Care Corporation d/b/a SSM Health, by and through its
subsidiaries and/or affiliates (“SSM Health” or “Defendant”), operates a healthcare conglomerate
in Illinois, Missouri, Wisconsin, and Oklahoma that employs over 35,000 people. This case
concerns SSM Health’s failure to properly maintain its pension plans under the applicable
federal law regulating pension plans, the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”). In the alternative, even if the pension plans are not subject to ERISA, SSM
Health has breached its duties under state law. In particular, whether under federal or state law,
SSM Health has failed to adequately fund its pension plans, creating a substantial risk that the
plans will be unable to pay the benefits to which SSM Health’s employees are entitled. As
demonstrated herein, SSM Health’s failures harm the thousands of employees who have worked,
or continue to work, for SSM Health, and who, like employees throughout the country, are
depending on the pension benefits they worked hard to earn throughout their careers to support
their retirement.
2. As its name implies, ERISA was crafted to protect employee retirement funds. A
comprehensive history of ERISA put it this way:
Employees should not participate in a pension plan for many years only to lose their pension . . . because their plan did not have the funds to meet its obligations. The major reforms in ERISA—fiduciary standards of conduct, minimum vesting and funding standards, and a government-run insurance program—aimed to ensure that long-service employees actually received the benefits their retirement plan promised.
James Wooten, The Employee Retirement Income Security Act of 1974: A Political History
3 (Univ. of Cal. Press 2005).
3. This class action is brought on behalf of all participants and beneficiaries of three
pension plans sponsored by SSM Health Care Corporation: (i) the Retirement Plan for
29. As adopted in 1974, ERISA provided an exemption from compliance for certain
plans, in particular governmental plans and church plans. Plans that met those statutory
definitions were exempt from all of ERISA’s substantive protections for participants. ERISA
§ 4(b)(2), 29 U.S.C. § 1003(b)(2) (exemption from Title I of ERISA); ERISA § 4021(b)(3),
29 U.S.C. § 1321(b)(3) (exemption from Title IV of ERISA).
30. ERISA defined a church plan as a plan “established and maintained . . . for its
employees . . . by a church or by a convention or associations of churches.”1
31. Although the 1974 legislation required church plans to be established and
maintained by a church, employees of certain pre-existing agencies of such church were
grandfathered, but that provision had a sunset clause and was set to expire in 1982.2 ERISA
§ 3(33)(C) (1974), 29 U.S.C. § 1002(33)(C) (1974) (current version as amended at 29 U.S.C.
§ 1002(33) (2012)). Thus, under the 1974 legislation, no pension plan could qualify for the
church plan exemption unless it was both established and maintained by a church. Id.
C. The Changes to the Church Plan Exemption in 1980
32. The church plan definition was amended in 1980. Multiemployer Pension Plan
Amendments Act of 1980 (“MPPAA”), Pub. L. No. 96-364, § 407, 94 Stat. 1208 (1980). The
amended definition is current law.
1 ERISA § 3(33)(A), 29 U.S.C. § 1002(33)(A). ERISA is codified in both the labor and tax provisions of the United States Code, titles 29 and 26 respectively. Many ERISA provisions appear in both titles. For example, the essentially identical definition of church plan in the Internal Revenue Code is found at 26 U.S.C. § 414(e).
Integration and Ethics, none have degrees relating to theology, canon law, or other church-
related academic disciplines. The stated duties of the System Management team are,
unsurprisingly, focused on running a large healthcare system:
All strategic, operating, human resource, capital, policy and procedure questions impacting the entire system are brought to this group for input and/or decision. System Management focuses on the operational and strategic priorities of each entity, network and system-wide issues affecting our patients and their
communities.3
67. Executive Officers of SSM Health receive compensation in line with executive
officers of other hospital systems. For example, in 2015, the SSM Health President received
reportable compensation of $2.25 million.
68. No church has any role in the maintenance and/or administration of the
SSM Pension Plans.
B. The SSM Pension Plans
69. The SSM Pension Plans are non-contributory defined benefit pension plans
covering substantially all of SSM Health’s employees. Under the Plans, employees earn a
defined benefit based on their pay and years of service. Employees can earn a year of service and
a year of credited service for each calendar year in which they are credited with at least
1,000 hours of service. Participants are fully vested after they are credited with five calendar
years of service.
70. On information and belief, the SSM Pension Plans provide for a lump sum option
as a form of benefit available to retirees who are eligible under the terms of the Plans.
3 System Management, SSMHealth.com, http://www.ssmhealth.com/system/about-ssm/leadership-team(last visited Sept. 6, 2017).
71. For example, SSM offered Plaintiff Feather a lump sum value of $141,982.78,
calculated as of February 1, 2016, as full satisfaction for Plaintiff Feather’s vested monthly
benefit of $2,836.32, starting at age 65. Plaintiff Feather will turn 65 in 2028.
72. On information and belief, the lump sum value offer was pursuant to the terms of
the Plans.
73. SSM Health, or its predecessor(s) or affiliate(s), established each of the
SSM Pension Plans and has the power to continue or terminate the Plans.
74. SSM Health maintains each of the SSM Pension Plans.
75. SSM Health is the plan sponsor with respect to the SSM Pension Plans.
76. SSM Health, as the employer and plan sponsor of the SSM Pension Plans, has the
obligation—under ERISA as well as the express and implied terms of the SSM Pension Plan
documents—to make contributions to the SSM Health Trust and to fund the SSM Pension Plans.
77. As SSM Health stated in materials sent to participants:
The Retirement Plan for Employees of SSM Health Care is the primary retirement plan that SSM Health Care (SSMHC) provides to eligible employees. It is funded entirely by SSMHC; you do not contribute or assume any financial risk or
responsibility.4
78. SSM Health has an obligation to make contributions to the SSM Health Trust that
are sufficient to fund all accrued benefits.
79. SSM Health does not fund the Plans consistent with ERISA’s minimum funding
requirements.
80. The SSM Pension Plans together are currently underfunded by at least
$813 million according to SSM Health’s most recently published financial statements. Plans so
4Planning for Your Future: Your SSM Health Care Defined Benefit Pension Plan at 2, SSM Health Care (2012) (emphasis added).
102. SSM Health claims that the SSM Pension Plans are “church plans” under ERISA
section 3(33), 29 U.S.C. § 1002(33), and the analogous section of the Internal Revenue Code
(“IRC”), and are therefore exempt from ERISA’s coverage under ERISA section 4(b)(2),
29 U.S.C. § 1003(b)(2).
1. Only Two Types of Entities May Maintain a “Church Plan,” and SSM Health Is Neither
103. Under section 3(33) of ERISA, 29 U.S.C. § 1002(33), only the following two
provisions address which of entities may maintain a church plan:
• First, under section 3(33)(A) of ERISA, 29 U.S.C. § 1002(33)(A), a church plan may be maintained by a church or by a convention or association of churches; and
• Second, under section 3(33)(C)(i) of ERISA, 29 U.S.C. § 1002(33)(C)(i), a church plan may be maintained by an organization, the principal purpose or function of which is the administration or funding of a retirement plan, if such organization is controlled by or associated with a church or convention or association of churches.
104. Although other portions of ERISA section 3(33)(C) address, among other matters,
who can be participants in church plans—in other words, which employees can be in church
plans, etc.—these other portions of ERISA section 3(33)(C) do not add any other type of entity
that may maintain a church plan. ERISA § 3(33)(C); 29 U.S.C. § 1002(33)(C).
105. The SSM Pension Plans do not qualify as church plans under either ERISA
section 3(33)(A) or section 3(33)(C)(i), 29 U.S.C. § 3(33)(A) or (C)(i).
106. First, the SSM Pension Plans are not maintained by any church or convention or
association of churches within the meaning of ERISA section 3(33)(A), 29 U.S.C.
§ 1002(33)(A).
107. The SSM Pension Plans are maintained by SSM Health for its own, or its
affiliates’ own, employees. Because neither SSM Health nor its affiliates are a church or a
2. Even if the SSM Pension Plans Were Maintained by a Permissible Entity, They Would Nonetheless Fail to Satisfy Other Elements of the Church Plan Definition
110. Under both ERISA section 3(33)(A) and section 3(33)(C)(i), a church plan must
be maintained for the employees of a church or a convention or association of churches.
29 U.S.C. § 1002(33)(A), (C)(i). The SSM Pension Plans do not qualify. The approximately
35,000 participants in the SSM Pension Plans are or were employees of SSM Health, a non-
profit healthcare system. SSM Health is not a church or convention or association of churches
and its employees are not employees of a church or convention or association of churches within
the meaning of ERISA.
111. Under ERISA section 3(33)(C)(ii)(II), 29 U.S.C. § 1002(33)(C)(ii)(II), however,
an employee of a tax exempt organization that is controlled by or associated with a church or a
convention or association of churches also may be considered an employee of a church. The
SSM Pension Plans also fail this part of the definition, because SSM Health is not controlled by
or associated with a church or convention or association of churches within the meaning of
ERISA.
112. SSM Health is organized as a non-profit corporation under Missouri law.
113. SSM Health is governed by its Board of Directors.
114. SSM Health’s Board of Directors must act in the best interests of SSM Health at
all times.
115. SSM Health’s Board of Directors owes fiduciary duties to the non-profit
corporation.
116. SSM Health is not controlled by any church.
117. SSM Health is not controlled by a convention or association of churches.
126. For these same reasons, the SSM Pension Plans further fail to satisfy the
requirements of ERISA section 3(33)(C)(i) because even if the SSM Pension Plans were
“maintained” by the internal committee and even if the committee qualified as principal-purpose
“organization,” section 3(33)(C)(i) requires that a principal-purpose organization be “controlled
by or associated with” a church or convention or association of churches. ERISA § 3(33)(C)(i),
29 U.S.C. § 1002(33)(C)(i). SSM Health’s internal committee, like SSM Health, is not
controlled by or associated with a church or convention or association of churches within the
meaning of ERISA. See id.
3. Even if the SSM Pension Plans Could Otherwise Qualify as “Church Plans” under ERISA Sections 3(33)(A) or (C)(i), They Are Excluded From “Church Plan” Status under ERISA Section 3(33)(B)(ii)
127. Under ERISA section 3(33)(B)(ii), 29 U.S.C. § 1002(33)(B)(ii), a plan is
specifically excluded from “church plan” status if less than substantially all of the plan
participants are members of the clergy or employed by an organization controlled by or
associated with a church or convention or association of churches. Even if the SSM Pension
Plans could otherwise qualify as church plans under ERISA sections 3(33)(A) or (C)(i), and even
if SSM Health itself were controlled by or associated with a church, the SSM Pension Plans still
would be foreclosed from church plan status under section 3(33)(B)(ii), 29 U.S.C.
§ 1002(33)(B)(ii), because, on information and belief, the SSM Pension Plans cover more than
an insubstantial number of employees that work for entities are not controlled by or associated
with the Catholic Church, and/or are not tax-exempt.
4. Even if the SSM Pension Plans Could Otherwise Qualify as “Church Plans” Under ERISA, the Church Plan Exemption, as Claimed by SSM Health, Violates the Establishment Clause of the First Amendment of the Constitution, and Is Therefore Void and Ineffective
128. The church plan exemption is an accommodation for churches that establish and
maintain pension plans, and it allows such plans to be exempt from ERISA.
129. The Establishment Clause guards against the establishment of religion by the
government. The government “establishes religion” where it exempts religious entities, but not
secular entities, from a neutral, generally applicable law and such exemption is not required to
alleviate a substantial burden on religious practice or to avoid government entanglement in
religion. ERISA is a neutral statute that governs pension benefits, and thus application of the
church plan exemption to SSM Health on the basis of SSM Health’s purported religious ties
relieves SSM Health of no genuine religious burden. Moreover, application of the “church plan”
exemption to SSM Health creates more government entanglement with alleged religious beliefs
than does compliance with ERISA. Accordingly, application of the “church plan” exemption to
SSM Health is not a valid religious accommodation.
130. Extension of the “church plan” exemption to SSM Health privileges SSM Health
for its purported religious beliefs at the expense of its employees, who are told that religion is not
a prerequisite to their employment, yet who are then denied the benefit of insured, funded
pensions, as well as many other important ERISA protections. Similarly, SSM Health has a
privileged economic advantage over its competitors in the commercial arena it has chosen, based
solely on SSM Health’s purported religious beliefs.
131. As set forth in more detail below in Count IX, the extension of the church plan
exemption to SSM Health, which is not a church, violates the Establishment Clause and thus is
profits of such fiduciary which have been made through use of assets of the plan by the fiduciary,
and shall be subject to such other equitable or remedial relief as the court may deem
appropriate.” Because the operation of the Plans as non-ERISA plans was a breach of
Defendants’ fiduciary duties, the Defendants breached their fiduciary duties and Plaintiffs also
seek plan-wide equitable and remedial relief under ERISA section 502(a)(2), 29 U.S.C.
§ 1132(a)(2).
154. As the SSM Pension Plans are not “church plans” within the meaning of ERISA
section 3(33), 29 U.S.C. § 1002(33), and each meet the definition of a pension plan under ERISA
section 3(2), 29 U.S.C. § 1002(2), the SSM Pension Plans should be declared to be ERISA-
covered pension plans, and the SSM Pension Plans’ Sponsor and Administrator should be
ordered to bring the SSM Pension Plans into compliance with ERISA, including by remedying
the violations set forth below.
COUNT II
(Claim for Violation of Reporting and Disclosure Provisions Against Defendant Pension Committee and John and Jane Does 1-20, the Pension Committee Member Defendants)
155. Plaintiffs incorporate and re-allege by reference the foregoing paragraphs as if
fully set forth herein.
1. Summary Plan Descriptions
156. At no time has the Pension Committee or its members provided Plaintiffs or any
member of the Class with a Summary Plan Description with respect to the SSM Pension Plans
that meets the requirements of ERISA section 102, 29 U.S.C. § 1022, and the regulations
section 302, 29 U.S.C. § 1082, Defendant SSM Health has violated ERISA section 302,
29 U.S.C. § 1082.
COUNT IV
(Claim for Equitable Relief Pursuant to ERISA Section 502(a)(3) for Violation of ERISA Sections 203(e), 204(c)(3), and 205(g) Against Defendants SSM Health and Pension
Committee)
175. Plaintiffs incorporate and re-allege by reference to the foregoing paragraphs as if
fully set forth herein.
176. ERISA section 204(c)(3), 29 U.S.C. § 1054(c)(3), provides that “in the case of
any defined benefit plan, if an employee’s accrued benefit is to be determined as an amount other
than an annual benefit commencing at normal retirement age [e.g., a lump-sum distribution] . . .
the employee’s accrued benefit . . . shall be the actuarial equivalent of such benefit[.]”
(Claim for Breach of ERISA Fiduciary Duties Against All Defendants)
200. Plaintiffs incorporate and re-allege by reference to the foregoing paragraphs as if
fully set forth herein.
201. Plaintiffs bring this Count VIII for breach of fiduciary duty pursuant to ERISA
section 502(a)(2), 29 U.S.C. § 1132(a)(2).
1. Breach of the Duty of Prudence and Loyalty
202. This sub-Count alleges fiduciary breach against all Defendants.
203. ERISA section 404(a)(1), 29 U.S.C. § 1104(a)(1), provides in pertinent part that:
a fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and –
(A) for the exclusive purpose of:
(i) providing benefits to participants and beneficiaries; and
(ii) defraying reasonable expenses of administering the plan;
(B) with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims
. . . and
(D) in accordance with the documents and instruments governing the plan insofar as such documents and instruments are consistent with the provisions of this [Title I of ERISA] and [Title IV].
204. As fiduciaries with respect to the SSM Pension Plans, Defendants had the
authority to enforce each provision of ERISA alleged to have been violated in the foregoing
paragraphs pursuant to ERISA section 502(a)(3), 29 U.S.C. § 1132(a)(3). Having the authority to
enforce the provisions of ERISA at those respective times, ERISA sections 404(a)(1)(A)-(D),
29 U.S.C. § 1104(a)(1)(A)-(D), imposed on Defendants the respective duty to enforce those
236. The failure of Defendants to enforce the funding obligations owed to the Plans
has resulted in a loss to the SSM Pension Plans equal to the foregone funding and earnings
thereon, and profited Defendant SSM Health by providing it the use of money owed to the SSM
Pension Plans for its general business purposes.
COUNT IX
(Claim for Declaratory Relief that the Church Plan Exemption, if Applied to the Plans, Violates the Establishment Clause of the First Amendment of the Constitution,
and Is Therefore Void and Ineffective as to the Plans)
237. Plaintiffs incorporate and re-allege by reference to the foregoing paragraphs as if
fully set forth herein.
238. The church plan exemption is an accommodation that exempts churches and
conventions and associations of churches, under certain circumstances, from compliance with
ERISA.
239. Application of the church plan exemption to SSM Health, an entity that has
chosen to compete with commercial businesses by entering the economic arena and trafficking in
the marketplace would result in an exemption from a neutral, generally applicable statute that is
available to hospital systems with claimed ties to a religion, but not to analogous secular hospital
systems.
240. An exemption from a neutral, generally applicable statute that is available
exclusively to SSM Health on the grounds of a claimed religious affiliation is an unconstitutional
establishment of religion unless the exemption is necessary to alleviate a substantial, state-
imposed burden on religious exercise or to avoid substantial government entanglement in
religion. Application of the church plan exemption to SSM Health accomplishes neither purpose.
241. An exemption from ERISA for SSM Health is not required to alleviate a
substantial, state-imposed burden on religious exercise. ERISA is a neutral statute that governs
insure (through premiums to the PBGC), and administer their pension plans, as well as providing
other ERISA protections. In claiming that the SSM Pension Plans are exempt “church plans,”
SSM Health enjoys a material competitive advantage because it is able to divert significant cash,
which otherwise would be required to fund, insure (through premiums to the PBGC), and
administer the SSM Pension Plans, to its competitive growth strategy. The church plan
exemption, as claimed by SSM Health, provides no consideration of the disadvantage it creates
for SSM Health’s competitors.
247. Plaintiffs seek a declaration by the Court that application of the church plan
exemption to the Plans is unconstitutional under the Establishment Clause of the First
Amendment, and is therefore void and ineffective as to the Plans.
COUNT X6
(Alternative Claim for Breach of Contract and Specific Performance Against Defendant SSM Health)
248. Plaintiffs incorporate and re-allege by reference the foregoing paragraphs as if
fully set forth herein.
249. SSM Health has repeatedly promised to fund the pensions of Plaintiffs and the
other Class members and to pay defined pension benefits upon retirement in exchange for their
continued employment.
250. At all relevant times, SSM Health was the “sponsor” and “employer” with respect
to the SSM Pension Plans.
251. In the SSM Pension Plans’ documents, including applicable plan restatements and
summary plan descriptions, SSM Health made promises to: (1) pay to Plaintiffs and other Class
6 Counts X through XII state alternative claims for relief under State law if the Court determines that the SSM Pension Plans are “church plans” exempt from ERISA.
i. Revising the Plan documents to reflect that the Plans are defined benefit plans regulated by ERISA;
ii. Requiring SSM Health to fund the SSM Pension Plans in accordance with ERISA’s funding requirements, disclose required information to the SSM Pension Plans’ participants, and beneficiaries, and otherwise comply with all other reporting, vesting, and funding requirements of Parts 1, 2 and 3 of Title I of ERISA, 29 U.S.C. §§ 1021-31, 1051-61, 1081-85;
iii. Reforming the SSM Pension Plans to comply with ERISA’s vesting, accrual, and lump sum option requirements, and provide benefits in the form of a qualified joint and survivor annuity;
iv. Requiring the adoption of instruments governing the SSM Pension Plans that comply with ERISA section 402, 29 U.S.C. § 1102; and
v. Requiring the establishment of a trust in compliance with ERISA section 403, 29 U.S.C. § 1103.
D. Ordering Defendants to comply with ERISA’s reporting and disclosure
requirements, including by filing Form 5500 reports, distributing ERISA-compliant summary
plan descriptions, summary annual reports, and ERISA-compliant participant benefit statements,
and providing notices of the SSM Pension Plans’ funding status and deficiencies;
E. Ordering clarification of rights to future benefits pursuant to ERISA section
502(a)(1)(B), 29 U.S.C. § 1132(a)(1)(B);
F. Appointing an Independent Fiduciary to hold the SSM Pension Plans’ assets in
trust, to manage and administer the SSM Pension Plans and their assets, and to enforce the terms
of ERISA;
G. Ordering SSM Health to pay a civil money penalty of up to $110 per day to
Plaintiffs and each Class member for each day it failed to inform Plaintiffs and each Class
S. Awarding to Plaintiffs’ attorneys’ fees and expenses as provided by the common
fund and/or common benefit doctrine, ERISA section 502(g), 29 U.S.C. § 1132(g), and/or other
applicable doctrine;
T. Awarding to Plaintiffs taxable costs pursuant to ERISA section 502(g), 29 U.S.C.
§ 1132(g), 28 U.S.C. § 1920, Federal Rule of Civil Procedure 54(d)(1); and Mo. Ann. Stat.
§ 408.040.1 (2015), and other applicable law; and
U. Awarding to Plaintiffs pre-judgment interest on any amounts awarded pursuant to
law.
RESPECTFULLY SUBMITTED this 6th day of September, 2017.
KELLER ROHRBACK L.L.P.
/s/ Laura R. Gerber Lynn Lincoln Sarko Laura R. Gerber, No. 34981WA1201 Third Avenue, Suite 3200 Seattle, WA 98101-3052 Tel.: (206) 623-1900 Fax: (206) 623-3384 [email protected][email protected]
KELLER ROHRBACK L.L.P. Ron Kilgard 3101 North Central Avenue, Suite 1400 Phoenix, AZ 85012 Tel.: (602) 248-0088 Fax: (602) 248-2822 [email protected]
COHEN MILSTEIN SELLERS & TOLL, PLLCKaren L. Handorf Michelle Yau Julie Goldsmith Reiser 1100 New York Avenue, N.W. Suite 500, West Tower Washington, DC 20005
ARMSTRONG LAW FIRM LLC Matthew H. Armstrong, 63144 8816 Manchester Road, No. 109 St. Louis, MO 63144 Tel.: (314) 258-0212 [email protected]
IZARD, KINDALL & RAABE, L.L.P. Robert A. Izard Mark P. Kindall Douglas P. Needham 29 South Main Street West Hartford, CT 06107 Tel.: (860) 493-6292 Fax: (860) 493-6290 [email protected][email protected][email protected]