Retired Pastors Can Continue Suit Against Pension Board Over Reduced Annuities

In Johnson v. Evangelical Lutheran Church in America, (D MN, July 22, 2011), four retired Lutheran pastors filed a class action complaining of a violation of contractual and fiduciary rights in the reduction of annuities paid to them from the ELCA Retirement Plan. A Minnesota federal district court dismissed claims against the Evangelical Lutheran Church in America because it had no role in deciding to reduce payments to plaintiffs; nor was it liable either as a plan fiduciary or as the alter ego of the plan fiduciary. However the court permitted plaintiffs to proceed with their claims against the Board of Pensions of the Evangelical Lutheran Church in America for breach of contract and breach of fiduciary duty.  Plaintiffs were also given 30 days to amend their complaint to adequately allege certain of the claims that were dismissed. BNA's Daily Report for Executives today reports on the decision.