What's happening
This bill prohibits dissolving the St. Clare's Hospital employee pension fund until a state investigation or audit reviews its fund management.
Why it matters
Ensures accountability and transparency. By mandating a state-led investigation or audit before the pension fund can be dissolved, the bill aims to uncover any potential mismanagement or wrongdoing, protecting retirees and employees from possible financial harm.
Delays pension fund closure. The measure creates a legal pause, preventing the final dissolution of the St. Clare’s Hospital pension fund until a thorough review is complete, which may give affected retirees more time to organize, seek answers, or pursue legal remedies.
Involves multiple oversight bodies. By allowing the Department of Health, Attorney General, or Comptroller to lead the audit/investigation, the bill increases the chances of a comprehensive and impartial review, rather than relying on a single agency’s assessment.
Addresses historical concerns. St. Clare’s Hospital pension fund has been a point of controversy and hardship for former employees; this legislative action acknowledges those concerns and seeks to formally address past grievances before any irreversible action is taken.
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Who cares
Headline styles
Pause St. Clare’s Pension Dissolution
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect St. Clare's Pensions
In Assembly Committee · Governmental Operations · Sponsor Angelo Santabarbara
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1564
2025-2026 Regular Sessions
IN SENATE
January 10, 2025
Introduced by Sen. TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT prohibiting the New York Department of State from issuing a certificate of dissolution and filing a judgment or final order of dissolution for the pension fund for employees of the former St. Clare's Hospital in the city of Schenectady, county of Schenectady, until an investigation and/or audit by the New York State Department of Health, the New York State Attorney General or the New York State Comptroller has been conducted to ascertain whether there was any impropriety in the handling and management of funds in such pension plan
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding the provisions of sections 1003 and 1109 of the not-for-profit corporation law or any other provisions of article 10 or 11 of the not-for-profit corporation law, no petition for a certificate of dissolution for the pension fund for employees of the former St. Clare's Hospital in the city of Schenectady, county of Schenectady, shall be issued by the New York Department of State and no judgment or final order of dissolution by the Supreme Court shall be filed by the New York Department of State unless and until a period of sixty days has elapsed following the conclusion of an investigation and/or audit by the New York State Department of Health, the New York State Attorney General or the New York State Comptroller has been conducted to ascertain whether there was impropriety in the handling and management of funds in such pension plan.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01485-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act prohibiting the New York Department of State from issuing a certificate of dissolution and filing a judgment or final order of dissolution for the pension fund for employees of the former St. Clare's Hospital in the city of Schenectady, county of Schenectady, until an investigation and/or audit by the New York State Department of Health, the New York State Attorney General or the New York State Comptroller has been conducted to ascertain whether there was any impropriety in the handling and management of funds in such pension plan
Purpose
To ensure an entity of New York State with investigative or subpoena powers conduct an audit and/or an investigation prior to the execution of a Certificate of Dissolution for St. Claire's Hospital.
Summary of provisions
Section 1. Notwithstanding the provisions of sections 1003 and 1109 of the not-for-profit corporation law or any other provisions of article 10 or 11 of the not-for-profit corporation law, no petition for a certif- icate of dissolution for the pension fund for employees of the former St. Clare's Hospital in the city of Schenectady, county of Schenectady, shall be issued by the New York Department of State and no judgment or final order of dissolution by the Supreme Court shall be filed by the New York Department of State unless and until a period of sixty days has elapsed following the conclusion of an investigation and/or audit by the New York State Department of Health, the New York State Attorney General or the New York State Comptroller has been conducted to ascertain wheth- er there was impropriety in the handling and management of funds in such pension plan.
Justification
In the summer of 2018, more than 1,100 former St. Clare's Hospital employees and retirees were notified their pensions would either be significantly reduced or outright eliminated in 2019. In some cases, people who worked at hospital for decades will receive no pension at all.
These 1,102 hard-working former Sr. Clare's iigspital employees did their job and played by the rules for many years with the understanding they were going to get the pension they earned at retirement, only to have the rug pulled out from under them.
This legislation calls on the Department of State to delay the execution of a Certificate of Dissolution for St. Clare's Corporation until the New York State Department of Health, Attorney General or Comptroller completes an investigation and/or audit to ascertain whether or not there were any improprieties that led to the St. Claire's pension insolvency.
Legislative history
05/08/19: S.5596 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS 05/20/19: S.5596 REPORTED AND COMMITTED TO FINANCE
01/08/20: S.5596 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
01/19/21: S.2041 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
01/05/22: S.2041 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
01/10/23: S.1183 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
01/03/24: S.1183 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.