Law Offices of Louis Spitters

California employment dispute over pension reduction

According to reports, certain California nurses gathered around in a protest regarding pension benefits. This employment dispute is a result of a proposed decrease in the amount of monthly retirement benefits from one of the largest health care systems. Dignity Health has over 300 facilities in California and other areas with 56,000 employees, including 11,000 physicians. They are set to negotiate the terms of the agreement.

The nurses were informed that their retirement benefits would decrease by 30 percent based on a guide from the 2006 Pension Protection Act. The nurses are clashing over the decrease and according to the agreement, both sides are to negotiate any changes to the contract. Dignity Health is setting up a session with the California Nurses Association to negotiate the retirement plan.

The company states that their calculations are a more precise representation of life expectancies and cost of living. Moreover, Dignity Health issued a statement that none of their staff members are subject to receiving any less per year than what they are currently earning, in spite of the changes. In addition, it prides itself in making sure that those who have retired can anticipate their full benefits.

When a company makes any changes to an existing agreement, it can lead to an employment dispute, especially if employees are to receive less than what they already earn. Understandably, employees have worked for many years to be able to retire and earn a pension. California beneficiaries of retirement plans may be able to safeguard their benefits by becoming more aware of their rights.

Source:, Dignity Health, nurses agree to meet over pension plan dispute, Mark Glover, Dec. 12, 2013

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