Federal judge dismisses some, keeps other charges in pension suit { ELCA & Augsburg Fortress}

A federal judge has dismissed claims that Augsburg Fortress Publishers violated federal labor law when it moved to dissolve its pension plan so that 500 current and former employees will receive less than originally promised.

U.S. District Judge Michael Davis found the retirement plan is a "church plan," exempt from the Employee Retirement Income and Security Act of 1974.

"We're pleased with the result," said Charles Knapp, an attorney for Augsburg Fortress. "But it's a regrettable situation all the way around. If Augsburg Fortress hadn't terminated it, the plan would have run out of money in five years. It was fairer to terminate and allow for a more equitable distribution to a broader group [over time].''

Davis, in ruling on the motion of Augsburg Fortress and the Evangelical Lutheran Church of America (ELCA) to dismiss the case, also tossed out a claim of consumer fraud.

However, Davis said the plaintiffs case may proceed on related state law claims. The plaintiffs allege that Augsburg Fortress was controlled by the deeper-pockets Lutheran Church, which along with Augsburg Fortress, violated their fiduciary responsibilities to properly fund the pension plan on behalf of about 175 retirees and 500 current and former employees.

The plaintiffs allege that Augsburg Fortress was controlled by the deeper-pockets Lutheran Church . . ."

That was, of course, before the Aug. '09 ELCA convention vote to bid adieu to its Bible-believing members and their tithes.

The ELCA's putatively deep pockets get shallower every day.

Results Jan. 23: Congregations voting to leave the ELCA

1. Concordia Lutheran Church, China Grove, NC ** passed second vote to leave ELCA 164-5.
2. St. Stephen Lutheran Church, Portland, TX ** passed second vote 95.3%. Voted to join NALC and LCMC.
3. First Lutheran Church, Pillager, MN * passed first vote 54-13.
4. Immanuel Lutheran Church, La Vernia, TX** passed second vote 100-2. Voted to join NALC.
5. Grace Lutheran Church, Huntington Beach, CA * passed first vote 255-42.
6. St. John Lutheran Church, Grove City, OH * passed first vote 156-33.
7. Our Saviour's Lutheran, Nelson, MN ** passed second vote 100%. Joined LCMC.
8. Fahlun Lutheran Church, Nelson, MN * passed first vote 100%.
9. Ascension Lutheran Church, Shiocton, WI* passed first vote 60-7.
10. St. John Lutheran, Plainfield, IA** passed second vote 1/9/11
11. Waterloo Ridge Lutheran Church, Dorchester, IA * passed first vote 1/16/11, 38-7.
12. Denny Park Lutheran Church Seattle, WA * passed first vote 1/23/11, 95%.
13. Mt. Calvary Lutheran Church, Claremont, NC** passed second vote 1/9/11. NALC
14. Bethel Lutheran Church, Lincolnton, NC ** passed second vote 1/16/11, 95%. Joined NALC
15. Hegland Lutheran Church, Hawley, MN ** passed second vote 1/11. Joined LCMC

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