Northwell Health Pension Plan Conversion Lawsuit Recommended for Dismissal

Got story updates? Submit your updates here. ›

A proposed class action lawsuit challenging disclosures related to a 1999 conversion of North Shore University Hospital's traditional pension plan to a cash balance plan should be dismissed, a magistrate judge recommended. The lawsuit, filed in 2024 by current and former Northwell Health Pension Plan participants, alleged the plan's administrators failed to properly notify participants about the changes.

Why it matters

This case highlights the importance of pension plan administrators providing clear and timely disclosures to participants about any changes to their retirement benefits, as required under the Employee Retirement Income Security Act (ERISA). The recommendation to dismiss the lawsuit suggests the court found the Northwell plan's disclosures were sufficient, which could set a precedent for other cash balance plan conversions.

The details

According to the magistrate judge's recommendation, the Northwell Health Pension Plan provided participants with adequate notice about the 1999 conversion from a traditional pension plan to a cash balance plan. The lawsuit alleged the plan's administrators failed to properly disclose the changes, but the judge said the disclosures leading up to and following the conversion met ERISA's requirements.

• The Northwell Health Pension Plan converted from a traditional pension plan to a cash balance plan in 1999.
• The proposed class action lawsuit was filed in 2024 by current and former Northwell plan participants.

What’s next

The magistrate judge's recommendation will now go to the district court judge for a final decision on whether to dismiss the lawsuit.