AME Church Clergy Could Recover $44M More in Retirement Scandal Settlement

Why It Matters

The additional payout moves the class closer to full restitution, reducing financial hardship for thousands of clergy and setting a benchmark for pension litigation involving religious organizations.

Key Takeaways

• Preliminary approval adds $44.4M to clergy retirement recoveries
• Total expected recovery approaches $106.2M for 4,500 claimants
• Legal fees previously consumed over one‑third of the $60M settlement
• Symetra and former director accused of misappropriating retirement funds
• Settlement avoids trial risks and speeds restitution for AME clergy

Pulse Analysis

The AME Church’s retirement debacle, first exposed in 2021, revealed that thousands of clergy and staff members were missing billions of dollars from their pension accounts. Allegations centered on Rev. Jerome Harris, the former director of the denomination’s Department of Retirement Services, who allegedly provided inflated statements and colluded with Symetra Life Insurance to divert funds. Over the past four years, plaintiffs consolidated 4,500 individual claims into a single class action, arguing that the plan’s balance should have been $227 million higher than the June 2021 statements indicated. The protracted litigation highlighted systemic governance failures in a historically Black religious institution and raised broader concerns about fiduciary oversight in nonprofit pension schemes.

In August 2024, a $60 million partial settlement was approved, but legal costs ate up more than a third of that amount, leaving participants with limited relief. The latest development—preliminary approval of an additional $44.4 million from Symetra—brings the cumulative recovery to roughly $106.2 million. By avoiding a full trial, the settlement spares both parties from further legal expenses and delays, delivering more immediate cash flow to retirees who have endured housing instability and financial anxiety. Plaintiffs’ counsel, backed by the AARP Foundation, framed the deal as a “major step forward,” while the AME Church itself remains a non‑party to the Symetra agreement.

Beyond the immediate financial impact, this case underscores the importance of robust pension governance for religious and nonprofit entities. Regulators and board members are likely to scrutinize retirement plan administration more closely, especially where third‑party administrators like Newport Group are involved. For clergy, the restored funds—now covering about 61.5% of the June 2021 balances—provide a pathway to rebuilding retirement security. The settlement also sets a precedent that could influence future litigation against insurers and fiduciaries accused of mismanagement, reinforcing the message that transparent, accountable stewardship of retirement assets is non‑negotiable.