A major victory for former St. Clare’s employees who fought to secure their pensions.
SCHENECTADY, N.Y. — After a lengthy trial, the Schenectady Supreme Court jurors ruled in favor of the workers, finding that the pension funds were mismanaged and awarding more than $54 million. The case was brought by the New York State Attorney General’s Office alongside the AARP Foundation.
The jury determined that former bishops and the former leadership of St. Clare’s Hospital failed to administer the St. Clare’s Hospital pension plan properly for 1,124 workers, according to the Attorney General’s Office. Specifically, former Albany bishops Howard Hubbard and Edward Scharfenberger, former diocesan employee and St. Clare’s President Joseph Pofit, and former St. Clare’s Hospital President Robert Perry were found to have breached their fiduciary duties to the hospital and its pensioners. The Roman Catholic Diocese of Albany, however, was not found liable.
The court awarded $54.2 million in damages to the pensioners for missing pension payments and the opportunity to retire with dignity.
Attorney General Letitia James called the verdict a significant win for every St. Clare’s Hospital employee who provided patient care yet was unjustly deprived of their pension.
Reaction to the verdict also came from Assemblyman Angelo Santabarbara, who described it as a long-overdue affirmation of fairness for retirees who dedicated decades to serving their community and earned the retirement security they were promised.
During closing arguments on the previous day, the defense tried to place blame on the state Department of Health and the Berger Commission, which had been pressing hospitals to operate more efficiently. St. Clare’s ultimately closed its doors in 2008.
Plaintiffs’ attorneys contended that the hospital’s board should have allocated more money to the pension fund and been more transparent with pensioners about the fund’s precarious state.
Stay with NewsChannel 13 for updates on air and online.
Related coverage:
- Closing arguments in the St. Clare’s pension case (link)
- St. Clare’s pensioners hopeful as trial wraps up (link)
Tags: St. Clare’s Pension Fund, St. Clare’s Hospital, Schenectady
