Nurses, oth­ers file class-ac­tion suit over Daugh­ters of Char­ity pen­sion plan

Modern Healthcare - - REGIONAL NEWS - —Beth Kutscher

Nurses and other em­ploy­ees at Daugh­ters of Char­ity Health Sys­tem have filed a class-ac­tion suit, ar­gu­ing that their em­ployer un­der­funded its pen­sion plan and a sale would fur­ther jeop­ar­dize their re­tire­ment ben­e­fits.

The Ser­vice Em­ploy­ees In­ter­na­tional Union-United Health­care Work­ers West is back­ing the suit. The lo­cal union also op­poses the sale of the Los Al­tos Hills, Calif.-based sys­tem to for-profit chain Prime Health­care Ser­vices. A spokes­woman for Daugh­ters of Char­ity, which for­mally an­nounced its deal with Prime on Oct. 11, called the law­suit “an un­for­tu­nate scare tac­tic by a union wag­ing a cor­po­rate cam­paign against Prime Health­care that will do what­ever it can to slow or stop its pur­chase of Daugh­ters of Char­ity Health Sys­tem, in­clud­ing jeop­ar­diz­ing the pen­sions of its own mem­bers.”

The suit claims that the Daugh­ters of Char­ity’s pen­sion plan was un­der­funded to the tune of $229 mil­lion as of Dec. 31.

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