Diocese Is “Dragging Its Feet” in Resolving Failed St. Joseph Hospital Pension Fund, Says Receiver

Diocese Is “Dragging Its Feet” in Resolving Failed St. Joseph Hospital Pension Fund, Says Receiver

The receiver for the failed state’s largest failed pension fund is charging that the Dioceses of Providence is “dragging its feet” to delay court action and the resolution of the battle to over tens of millions of dollars the receiver believes the Diocese is liable for to thousands of retirees.

The St. Joseph pension plan was forced into receivership in August of 2017, and in 2018, lawyers for the pension fund sued alleging that Bishop Thomas Tobin and the Diocese of Providence were responsible for the failure of the fund. 

While all other major litigants have settled, the Diocese of Providence has filed motion after motion to delay the litigation now pending in federal court.

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The litigation has traveled on two paths -- the state court where Superior Court Brian Stern has presided and in Federal Court where Judge William Smith has jurisdiction.

Stern tells GoLocal, "There have been recoveries from a number of entities. The remaining outstanding issue is the resolution of the suit with the Diocese. That is in federal court."

 

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The Diocese's lawyers have been using legal motions to delay the resulting of the case says receiver Stephen Del Sesto.

“I guess I will say the crafty lawyering that can be done on the side of the Diocese that this could go on for three-four maybe even five years in litigation and you know that's not because [federal court Judge William Smith] is not moving things along or we're not,” said Del Sesto in a Zoom call to the retirees on January 10.

“It's just the process by which things happen and with all of the complex issues that are going on that's just about how long it will take,” said Del Sesto.

“[As the] Diocese typically does in their litigation, they do not usually fold up their tent and walk away early--  they usually fight it until the end,” said Del Sesto.

Over the years, the messaging has varied from the Diocese. Shortly after the collapse of the retirement fund, Tobin announced he was praying for resolution.

In January of 2021, GoLocal first reported that St. Joseph’s failed pension fund has reached an agreement with a number of litigants including the hospital's former owner CharterCARE. The settlement is for $30 million not including legal fees and bolsters the total amount recovered for the past 3 plus years to $47 million.

CharterCare's parent company will pay the lion's share of $27 million and other related litigants will pay a combined $3 million.

The United Nurses and Allied Professionals, the union that represents more than 7,000 nurses and health professionals, has launched a campaign calling on Rhode Island Catholics to stop donating to the Church until the Diocese of Providence fulfills its moral and financial obligation to the retired nurses and healthcare workers from St. Joseph’s and Our Lady of Fatima hospitals. SEE VIDEO BELOW

“When Bishop Tobin and the Roman Catholic Diocese of Providence allegedly failed to properly fund their own nurses and health care workers’ pension system for a decade, they did more than financially mismanage an asset – they jeopardized the financial future of the very workers who selflessly served the Church and their patients for decades,” said Lynn Blais, R.N., President of the United Nurses and Allied Professionals.

“This whole episode has been a massive injustice to the retired nurses and healthcare workers who have been put in financial jeopardy and face losing their retirement. These people did nothing wrong, and they’re losing sleep at night because they know that the pension payments they were promised could stop coming at any time. We are going all in using paid media and grassroots efforts to inform practicing Catholics about the lack of concern Bishop Tobin and the Diocese of Providence have for these mostly female, mostly elderly retirees,” adds Blais.

Marilyn Horan, a retired nurse who worked at St. Joseph’s Hospital is featured in the effort to force the Diocese to resolve the litigation, “We worked for below-market rates at the Catholic Hospital, and went many years without a raise, but they always said ‘Don’t forget about the hidden paycheck,’ meaning our pension plan. I knew I’d never be rich, but I thought I could rely on my pension in retirement. Until they stabbed us in the back and left us hanging out to dry. Not in a million years did I think Bishop Tobin and the Catholic Church would betray us like this. I urge all Catholics to call Bishop Tobin out for this unfathomable betrayal of his own healthcare workers who gave so much to the Church and their patients for decades.”