Bold opening: Former St. Clare’s employees are fighting to reclaim their pensions after a years-long collapse that left thousands in the lurch. And this is where the story gets controversial...
Closing arguments were delivered this week in Schenectady as the high-stakes case of roughly 1,100 former St. Clare’s employees seeking to recover their pension funds nears its end. The plaintiffs allege the pension plan was badly mismanaged, culminating in its collapse in 2018. The suit is brought by the New York State Attorney General’s Office and the AARP Foundation.
The defense contends that St. Clare’s financial troubles were longstanding, predating 2008, when the hospital ultimately shut its doors. Defense attorney Brian Whiteley described a facility that struggled to retain staff and even to keep the lights on, arguing that the board failed to make the required contributions to the pension plan.
Anthony Cardona, representing the defense, attributed the deeper problems to decisions made before 2014 under Bishop Edward Scharfenberger and pointed to the Berger Commission’s 2006 report, which urged merging St. Clare’s Hospital and Ellis Hospital to streamline governance and efficiency. Cardona asserted that the state—not the bishop—controlled the process, and that the subsequent financial collapse and underfunded pension were consequences of that state-led direction.
Prosecutors note that St. Clare’s received state funding as part of the Ellis merger. They claim the Department of Health was asked for $28.5 million, a sum they say fell far short of the roughly $43 million pension deficit identified by 2006. The hospital ceased operations in 2008.
Monica Connell, representing the Attorney General’s Office, argued that the board had ample机会 to reverse course when it became clear the pension plan was sinking. The prosecution asserted that then-Bishop Howard Hubbard and hospital leadership ignored warning signs and failed to disclose to pensioners how underfunded the plan truly was, or that changes were being considered. Connell emphasized that without clear warnings, retirees cannot take proactive steps to safeguard their futures. She also noted that potential rescue options presented by the pension company were overlooked by the board.
Closing arguments were ongoing late Thursday afternoon, with a verdict-by-friday still a possibility. Updates are available on NewsChannel 13, both on air and online.
Related coverage: St. Clare’s pension trial beginning; Court hearing for pensioned retirees; Judge’s approval to continue the case.
