Bishop of Providence, Catholic Diocese, Prospect CharterCare sued over pension collapse
Acting on behalf of over 2,700 participants of a now defunct retirement plan, a class action lawsuit was filed in federal court against numerous defendants including the Bishop of Providence, the Catholic Diocese and the numerous interests of Prospect CharterCare.
The suit claims the actions taken by the defendants, which led to an insolvent pension fund, violated the Employee Retirement Income Security Act of 1974 even as the plan claimed exemption. Plaintiffs assert the plan was eventually covered by ERISA and therefore should have been funded.
They are seeking for the defendants to fund the plan. The suit claims the plaintiff became aware that the fund was inadequately funded in August of 2017 when it went into receivership, a form of bankruptcy.
The suit claims the pension plan was used a marketing tool to hire and retain employees, but for that last decade contributions had not been made. It also claims that for many years the defendants secretly sought a way to terminate the plan without being exposed to lawsuits.
The full lawsuit is available below: