Michigan Nurses Battle Over Lost Retirement Benefits
- Michigan Nurses Association claims that Ascension Borgess Hospital eliminated more than $500,000 in retirement funds.
- The nursing union filed an official complaint with the U.S. District Court in hopes to compel the hospital to enter into binding arbitration.
- The benefits were earned under previous collective bargaining agreements, and the hospital does not believe it is responsible for them.
The Michigan Nurses Association (MNA) has filed a lawsuit against Ascension Borgess Hospital in Kalamazoo, Michigan, alleging the hospital stripped away more than $500,000 in retirement funds belonging to roughly 120 registered nurses.
The union filed a complaint on February 10, 2026, in the U.S. District Court for the Western District of Michigan. They were seeking a court order to compel the hospital, operating as Borgess Medical Center, to enter into binding arbitration regarding the dispute.
Ascension Borgess Hospital was recently rebranded as Beacon Kalamazoo and is a 268-bed acute care hospital, Level II Trauma Center, and a Comprehensive Stroke Center.
The Legal Lowdown
According to court documents, the hospital allegedly wiped out all credited funds from nurses' Retirement Health Reimbursement Accounts (HRAs) around May 2025, benefits that were earned under previous collective bargaining agreements (CBAs) spanning 2016-2022.
The dispute centers on whether these benefits had already vested under prior agreements and could therefore not be eliminated during the current 2022-2025 contract period. The union argues that the hospital's actions directly violated contractual language governing how HRA funds accrued and could be used by employees.
The labor contract between the parties includes a multistep grievance procedure that culminates in binding arbitration for disputes involving contract interpretation or application. The union contends that the hospital's refusal to arbitrate constitutes an ongoing breach that undermines the bargaining relationship and causes irreparable harm by denying nurses their contractual right to binding arbitration.
Why This Matters to Nurses Everywhere
A 2024 survey by the TIAA Institute found that 42% of registered nurses lack confidence in their retirement savings. The potential loss of $500,000 in collectively earned benefits represents a significant financial impact for the affected nurses, averaging over $4,000 per nurse, which would only compound over time.
The Michigan Nurses Association is seeking several forms of relief: a court declaration that the hospital breached the CBA, an order compelling arbitration of the grievance, and the awarding of attorney fees and costs. As of the latest reporting, the case remains active before Judge Jane M. Beckering.
MNA is currently the largest union for registered nurses and healthcare professionals in Michigan. It is associated with National Nurses United (NNU). The union represents roughly 15,000 nurses across the state.
For nurses everywhere, this case is a reminder to keep an eye on your retirement benefits and ensure your collective bargaining agreements are as solid as your nursing skills.
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