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December
30, 2004
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2004-11A
ERISA
Sec.
3(33)
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Lauren
B.
Licastro,
Esq.
Morgan,
Lewis
&
Bockius,
LLP
One
Oxford
Centre
Pittsburgh,
Pennsylvania
15219-6401
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Dear
Ms.
Licastro:
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This
responds
to
your
request
on
behalf
of
the
Pittsburgh
Mercy
Health
System
and
the
Mercy
Life
Center
Corporation
in
Pittsburgh,
Pennsylvania,
regarding
the
applicability
of
Title
I
of
the
Employee
Retirement
Income
Security
Act
of
1974
(ERISA).
Specifically,
you
request
an
advisory
opinion
concluding
that
the
Pittsburgh
Mercy
Health
System
Cash
Accumulation
Plan,
the
Pittsburgh
Mercy
Health
System
401(k)
Savings
Plan,
and
the
Mercy
Life
Center
Corporation
Pension
Plan
(collectively
“Plans)
are
“church
plans”
within
the
meaning
of
section
3(33)
of
ERISA,
that
are
excluded
from
Title
I
coverage
by
ERISA
section
4(b)(2).(1)
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You
represent
that
the
Pittsburgh
Mercy
Health
System,
a
nonprofit
corporation
controlled
by
the
Religious
Sisters
of
Mercy,
which
is
a
religious
congregation
of
women
within
the
Roman
Catholic
Church,
established
the
Cash
Accumulation
Plan
and
the
401(k)
Savings
Plan
and
continues
to
maintain
them
for
eligible
employees
of
the
System
and
its
nonprofit
corporate
components.
You
also
represent
that
Mercy
Life
Center
Corporation,
which
is
one
of
the
System’s
nonprofit
corporate
components,
established
and
continues
to
maintain
its
Pension
Plan
for
union-member
employees
of
Mercy
Senior
Care-St.
Joseph
in
Pittsburgh,
Pennsylvania.
You
further
represent
that
the
Roman
Catholic
Church
controls
the
Pittsburgh
Mercy
Health
System
through
the
Religious
Sisters
of
Mercy,
including
the
Sisters
of
Mercy
of
the
County
of
Allegheny,
which
is
the
province
of
the
Religious
Sisters
of
Mercy
for
Pittsburgh
and
surrounding
geographic
area.
Among
other
materials,
you
submitted
a
private
letter
ruling
issued
by
the
Internal
Revenue
Service
(IRS)
to
the
Plans
on
October
22,
2003.
The
private
letter
ruling
concludes,
based
on
facts
it
recites
about
the
Pittsburgh
Mercy
Health
System,
the
Mercy
Life
Center
Corporation,
and
the
Plans,
that
the
Plans
are
“church
plans”
described
in
section
414(e)
of
the
Internal
Revenue
Code
(Code).
Finally,
you
represent
that
current
structure
and
operation
of
the
Pittsburgh
Mercy
Health
System,
the
Mercy
Life
Center
Corporation,
and
the
Plans
are
not
materially
different
from
facts
presented
in
the
IRS
private
letter
ruling.
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Section
3(33)
of
ERISA
defines
the
term
“church
plan”
using
language
virtually
identical
to
Code
section
414(e).
Conditioned
on
the
accuracy
on
your
representation
concerning
the
current
structure
and
operation
of
the
Pittsburgh
Mercy
Health
System,
the
Mercy
Life
Center
Corporation,
and
the
Plans
not
being
materially
different
from
facts
on
which
the
IRS
based
its
October
22,
2003,
private
letter
ruling,
the
Department
sees
no
reason
to
disagree
with
the
IRS’s
conclusion.
Accordingly,
for
the
above
reasons,
and
assuming
an
election
under
section
410(d)
of
the
Internal
Revenue
Code
has
not
been
made
for
any
of
the
Plans,
it
is
the
view
of
the
Department
that
the
Plans
constitute
“church
plans”
within
the
meaning
of
section
3(33)
of
Title
I
of
ERISA.
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This
letter
constitutes
an
advisory
opinion
under
ERISA
Procedure
76-1.
Accordingly,
it
is
issued
subject
to
the
provisions
of
that
procedure,
including
section
10
thereof
relating
to
the
effect
of
advisory
opinions.
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Sincerely,
John
J.
Canary
Chief,
Division
of
Coverage,
Reporting
and
Disclosure
Office
of
Regulations
and
Interpretations
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We
note
that
several
other
Advisory
Opinions
have
been
issued
to
other
entities
of
the
Religious
Sisters
of
Mercy
regarding
“church
plan”
status
within
the
meaning
of
section
3(33)
of
ERISA.
See,
e.g.,
Advisory
Opinions
No.
93-07A,
91-14A
and
95-13A.
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