Mismanagement and Neglect Caused 1,100 Former Hospital Workers to Lose Retirement Benefits
NEW YORK – New York Attorney General Letitia James today took action to protect Capital Region retirees by filing a lawsuit against the Roman Catholic Diocese of Albany, its leadership, and others, for their negligent and intentional actions that deprived more than 1,100 former employees of St. Clare’s Hospital of their pensions. Attorney General James alleges that the Diocese shirked its fiduciary and legal responsibilities to the former hospital workers when it failed to preserve and protect the hospital's pension. The decision of the Diocese to remove the pension plan from the protections available under federal law, its failures to adequately fund, monitor, or insure the pension, and its resulting failure to administer the pension violate New York Not-for-Profit Corporations Law and New York Estates, Powers & Trusts Law. In her suit, Attorney General James seeks to hold the Diocese liable for the misconduct and recover the pensions that the former hospital workers lost.
“These former hospital workers nobly served their community and cared for the sick, elderly, and vulnerable. But when they retired, they were left with nothing,” said Attorney General James. “No one should ever have to deal with the financial and emotional trauma of losing the resources they were counting on to survive. With this action, we're standing up for New Yorkers who deserve to retire with dignity,...
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