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Closing arguments are set to take place today in the St. Clare's pension trial in Schenectady. More than 1,100 former employees of St. Clare's Hospital are seeking $55 million after the hospital's pension plan was terminated in 2019. The state of New York and the AARP Foundation have filed a lawsuit against several defendants, including the Saint Clare's Corporation and the Roman Catholic Diocese of Albany.
The trial, which has been ongoing for six weeks, centers on allegations that the defendants violated their fiduciary duties by failing to adequately fund the pension plan. According to The Daily Gazette, the trial has seen testimony from key figures, including former Bishop Edward Scharfenberger, who was involved with the hospital's board. Scharfenberger testified that the diocese did not discuss the pension problem during his tenure and that he served on the board in a personal capacity.
The lawsuit, originally filed in 2019, was later joined by the New York Attorney General's Office in 2022. The plaintiffs argue that the hospital leadership and board failed to make necessary contributions to the pension plan and exited a federal pension insurance program, leaving the pensioners without promised benefits.
As reported by Yahoo News, the defense contends that the diocese cannot be held responsible for the actions of those who managed the pension fund, as the diocese did not own St. Clare's Hospital. The trial is expected to conclude with jury deliberations beginning tomorrow (Friday, December 12).