Summary
Providence Health & Services, a Catholic health system founded by the Sisters of Providence in the mid-19th century, has agreed to pay $42 million as part of a class-action lawsuit over its retirement plan management. The lawsuit was filed in October 2025 by former employee Victoria Halter and other plaintiffs who were participants in the 401(k) plan. The suit alleged that Providence failed to cover expenses related to the plan, including requiring participants to pay significant portions of costs that should have been covered by other assets. The company was accused of improperly managing the retirement funds, prioritizing its interests over those of beneficiaries and violating federal laws. Despite denying any liability or wrongdoing, Providence reached a settlement with plaintiffs in February 2026. Meanwhile, concerns persist about pension fund shortfalls affecting multiple U.S. Catholic organizations, including Christian Brothers Services, which has sought increased contributions from members to cover liabilities. Additionally, the collapse of a Catholic hospital’s pension plan led to a jury finding former Albany Bishop Edward Scharfenberger liable for $54.2 million in damages.
Key Topics
Providence Health & Services, Retirement plan, ERISA violations
