Wednesday, May 25, 2022

NY Attorney General Sues Diocese to Recover Pensions for St. Clare's Hospital Workers

Yesterday, New York Attorney General Letitia James filed a lawsuit against the Roman Catholic Diocese of Albany, its leadership, and others, for their alleged negligent and intentional actions that resulted in depriving over 1,100 former employees of St. Clare’s Hospital of their pensions.  The press release describes the lawsuit and history.

The complaint alleges that New York Not-for-Profit Corporations Law and New York Estates, Powers & Trusts Law were violated when the Diocese (1) decided to remove the pension plan from federal protections; (2) failed to adequately fund, monitor, or insure the pension; and (3) ultimately failed to administer the pension.

Attorney General James seeks to hold the Diocese accountable for these failures and to recover the pensions that the former hospital workers lost.

As a result of the alleged breaches of fiduciary duties, over 1,100 former employees lost their retirement benefits.  These former employees include St. Clare’s Hospital nurses, lab technicians, social workers, EMTs, orderlies, housekeepers, and other essential workers.

The lawsuit resulted from a 2019 investigation by Attorney General James after the Diocese terminated the pension that had been in place since 1959.  That investigation unearthed numerous and systemic violations of the Diocese’s fiduciary duties of care, loyalty, obedience, and disclosure to St. Clare’s Corporation, which ultimately resulted in depriving former employees and vested pensioners their promised retirement benefits. 

https://lawprofessors.typepad.com/nonprofit/2022/05/ny-attorney-general-sues-diocese-to-recover-pensions-for-st-clares-hospital-workers.html

Current Affairs, In the News, State – Judicial | Permalink

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