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Participants in Church Pension Plan May Sue for Breach of Fiduciary Duty

Participants in Church Pension Plan May Sue for Breach of Fiduciary Duty

Participants in Church Pension Plan May Sue for Breach of Fiduciary Duty

Minnesota Court of Appeals says decision can be made without involvement in religious doctrine
The Court of Appeals of Minnesota has reversed a trial court decision and permitted participants in pension plans of the Evangelical Lutheran Church in America to proceed with a suit against the plan board for breach of fiduciary duty. The case had been dismissed by the trial court for lack of subject matter jurisdiction. The trial court said it was barred by the First Amendment doctrine of ecclesiastical abstention. ( Bacon v. Board of Pensions of the Evangelical Lutheran Church in America , Ct. of App., MN, No. A15-1999, 7/25/16. ) The participants claimed that the board, trading as Portico Benefit Services, had failed to exercise care, skill, prudence and diligence in the selection and...

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