Rollins v. Dignity Health

Rollins v. Dignity Health

On June 12, 2020, the U.S. District Court for the Northern District of California entered an order denying a second motion for preliminary approval of a class-action settlement in this seven-year-old case alleging that the pension plan sponsored by Dignity Health does not qualify for the “church plan” exemption to the federal law governing pensions, known as “ERISA.” The Court determined that a sub-set of the proposed class had interests that were not adequately represented by the plaintiffs in the case – former plan participants who had left Dignity Health with more than three, but less than five, years of vesting service.

On August 28, 2020, IKR filed an appearance on behalf of three intervenor plaintiffs in the action, each of whom was a member of the unrepresented sub-group of the class. The Court granted the Motion to Intervene on November 2, 2020.

On April 16, 2021, following several months of investigations and negotiations, the parties submitted an amended settlement agreement to the Court for Preliminary Approval. The amended settlement contains several changes that improve the Settlement for the sub-group of class members identified by the Court in its June 12, 2020 Order. The Court granted the Motion for Preliminary Approval on October 19, 2021.

The Court held a final approval hearing on March 3, 2022 approving the Settlement and the Final Approval Order was sent out on July 15, 2022.

Post-Distribution Accounting
On July 15, 2022, the Court approved the Settlement and the Effective Date was August 15, 2022. On December 9, 2022, Class Counsel along with IKR filed a Post-Distribution Accounting of the Settlement in accordance with the Court’s order. The Post-Distribution Accounting details the benefits that were provided to Class Members since the Effective Date. To see a breakdown, by the numbers, of the Distribution, click the link below

[LINK TO EXHIBIT A, ECF 327-1]

Non-monetary relief: Participants and beneficiaries will have access to:

  • Summary Plan Descriptions (“SPDs”);
  • Annual reports identifying the funding arrangements, number of participants and net assets; and
  • Accrued Benefits information, including an online tool for projecting a Participant’s future benefits.

In addition, during the five years after the Effective Date (until August 15, 2027), Dignity Health has appointed two members of the Dignity Health Retirement Plans Sub-Committee who are not employees of Dignity Health or its affiliates. The Settlement also provides significant protection from cutbacks and forfeitures. Specifically, for ten years (until August 15, 2032), the Settlement ensures that the existing Accrued Benefits of Participants will not be reduced as a result of a transfer, merger, consolidation of the Plan with another plan, or an amendment to the Plan.
All Post-Distribution Accounting filings can be found below.

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