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SCHENECTADY (WNYT) – A long-awaited civil trial is now underway in Schenectady County Supreme Court as more than a thousand former St. Clare’s Hospital employees fight to reclaim their lost pensions.
The case, Hartshorne v. St. Clare’s, centers on allegations that the hospital’s pension fund was mismanaged before it collapsed in 2018, resulting in a $50 million shortfall. Former employees say their retirement savings were wiped out, money many had counted on after decades of service.
Attorneys representing the retirees, alongside the New York State Attorney General’s Office and the AARP Foundation, argue that the plan was mishandled by officials connected to the Roman Catholic Diocese of Albany. The diocese, which managed the pension fund, has denied responsibility and is also navigating its own bankruptcy case tied to sexual abuse claims.
Attorney Paul Levine, who represents the former workers, said the court must determine whether all creditors are being treated fairly- including pensioners who have gone years without the benefits they were promised.
The trial also raises questions about whether other settlements involving the diocese, such as its recent $8 million agreement in a Child Victims Act case, could impact efforts to recover pensions.
State Senator Neil Breslin previously said that New York “has a responsibility to help St. Clare’s pensioners.” At the same time, Senator Jim Tedisco added that he hopes the workers prevail in their fight for justice.
The trial is expected to last several days, with testimony from former employees and state officials.
For Related Stories: Schenectady County Supreme St. Clare’s Hospital employees Child Victims Act