New documents: St. Clare’s pension was $47 million short when Berger Commission consolidated

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CLIFTON PARK, N.Y. (NEWS10) – New documents reveal details about how much the St. Clare’s Hospital pension was in the red when the Berger Commission consolidated the hospital with Ellis Medicine in 2008.

The documents, titled ‘Schenectady Health Care Unification Project.’ says the pension shortfall as of December 31, 2006 was $47 million. The state however, only provided the hospital $28.5 million to fund the pension. Senator Tedisco is asking why there was a $19 million discrepancy.

The document was provided to Tedisco from a source who wants to remain anonymous to the public and the media. It says the reason for the underfunding resulted from a combination of:

  • Poor investment returns
  • Inability by the Hospital to make required contributions over recent years due to the financial challenges of its role as the safety net provider in Schenectady
  • Inaccurate actuarial assumptions by the former actuary (Prudential Retirement) which overstated projected earnings and plan assets as well as understated liability through failure to recognize the plan’s early retirement provisions

Last year, more than 1,100 former hospital workers found out their pensions would be either drastically reduced or eliminated all together.

There are several lawsuits pending, and the board which manages the pension is trying to dissolve.

Tedisco’s office is requesting the Attorney General investigate the new findings in the documents and try to answer some of the questions that have been raised. The AG’s office is in the process of trying to prevent the St. Clare’s Corporation pension board from dissolving.

NEWLY RELEASED DOCUMENTS:

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