Loophole exposes faith-based hospital workers to pension uncertainty 

A financially strapped Catholic hospital in New York can't pay retired workers' pensions — and due to a loophole, it may not be the only hospital that puts workers' financial futures at risk, according to NPR

Last month, about 100 pensioners from St. Clare's Hospital in Schenectady, N.Y., filed a lawsuit against the Roman Catholic Diocese of Albany for the loss of their pension benefits. The hospital cut benefits entirely for many retirees and reduced payments to the oldest beneficiaries due to a $35.5 million budget shortfall. 

NPR reports that the hospital, as a faith-based organization, can opt out of a federal pension insurance program that is mandatory for other employers who offer pensions. An estimated 1 million retired workers are at risk of losing their pensions due to this loophole, according to the report. 

Read the full story here.  


More articles on compensation:

10 hospitals offering nurses up to $10K signing bonuses
Average weekly pay for 10 most in-demand travel nurse specialties
Board of Arizona safety-net hospital backtracks on CEO's $100,000 pay hike after local paper inquires

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars