Dignity Health v. Rollins

Questions presented

SCOTUS records, cert granted 2 Dec 2016

The Employee Retirement Income Security Act of 1974 ("ERISA'') governs employers that offer pensions and other benefits to their employees. "Church plans" are exempt from ERISA's coverage. 29 U.S.C. §§ 1002(33), 1003(b)(2). For over thirty years, the three federal agencies that administer and enforce ERISA-the Internal Revenue Service, the Department of Labor, and the Pension Benefit Guaranty Corporation-have interpreted the church plan exemption to include pension plans maintained by otherwise qualifying organizations that are associated with or controlled by a church, whether or not a church itself established the plan. The question presented is whether the church plan exemption applies so long as a pension plan is maintained by an otherwise qualifying church- affiliated organization, or whether the exemption applies only if, in addition, a church initially established the plan.

Opinion summary

Etalia.ai summary of the majority opinion

The case involved whether church-affiliated hospitals like Dignity Health qualify for the 'church plan' exemption under the Employee Retirement Income Security Act (ERISA). ERISA sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals. The central question was if a pension plan maintained by an organization controlled by or associated with a church, but not directly established by one, could be exempt from ERISA's requirements. The Supreme Court ruled that such organizations are eligible for this exemption even if their plans were not originally created by a church. This decision hinged on interpreting statutory language concerning what constitutes a 'church plan,' ultimately broadening the scope of entities qualifying under this exemption.