Compliance August 20, 2012

Medical Centers’ Employees Sue Over Switch to DC

Employees at Truman Medical Centers (TMC) sued the hospital for changing their retirement plans.

Reported by

Service Employees International Union Healthcare Illinois, Indiana, Missouri, Kansas said TMC discontinued its defined benefit (DB) pension plans in February in favor of an enhanced defined contribution (DC) plan, reports the Kansas City Business Journal.

The suit, filed in federal court in Kansas City, claims that the change violated a June 2011 collective bargaining agreement and asks that the DB plans be reinstated. The hospital denied a grievance the union filed in March, according to the news report.

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The lawsuit was filed because the time period in which it could be filed was running out, but the union and hospital are having productive discussions that could resolve the matter out of court, the news report said.

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