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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...

The legal battle over the demise of Augsburg Fortress Press' pension plan is seven months along, but the case remains hung up on one key question: Was it actually a "church plan?" About 500 people were part of the plan that was terminated late last year. A federal lawsuit filed last spring by pensioners argues that the plan isn't actually a church pension plan. The pensioners instead say their retirement plan should be governed by the federal Employee Retirement Security Act, or ERISA. "This is the type of situation that led Congress to enact ERISA in the first place," Ron...

Most Americans have watched their retirement plans suffer over the past two years. But the 500 members of the Augsburg Fortress pension plan have had it worse than most. The publishing arm of the Evangelical Lutheran Church in America (ELCA) folded its plan in December, forcing beneficiaries to accept a significantly reduced income. The announcement, as well as similar ones from other church-affiliated organizations, has opened debate on how such pension plans are regulated. As a church plan, Augsburg Fortress's is not insured by the federal agency that insures private pension plans. The 1974 pension law's exemption for churches has...

St. Paul, Minn. — The Evangelical Lutheran Church in America's publishing house is telling retirees and workers that it is shutting down its pension because of stock market losses and a business downturn, and it could leave scores of retirees without a regular income as of April. The crisis at Augsburg Fortress is exposing an obscure loophole in federal pension law and the financial stress religious institutions have been under during the economic downturn. Fifty years ago, Joyce Ostrem graduated from college and went looking to do the Lord's work. "I considered myself a Christian, and I wanted to, you...

ELCA Publisher's Board Terminates Defined Benefit Retirement Plan 10-001-JB CHICAGO (ELCA) -- Augsburg Fortress, the publishing ministry of the Evangelical Lutheran Church in America (ELCA), announced in a Dec. 31, 2009, letter to participants that it will terminate its defined benefit retirement plan effective March 5. The action, approved by the board of trustees of Augsburg Fortress Dec. 18, affects 500 plan participants. Not affected by the decision is the company's current retirement plan -- a defined contribution plan -- in which Augsburg Fortress' current employees can participate. That plan is a 403b plan "common for non-profit organizations," according to...