Help For St. Joseph & Fatima Hospital Pensioners?

PROVIDENCE, RI — State Rep. K. Joseph Shekarchi is backing a bill that would help people whose retirement dreams are in peril due to the insolvency of the St. Joseph’s hospital pension. Shekarchi, the House Majority Leader, said lawyers for the pension plan members asked for help. Here are excerpts from the press release.

The bill (2018-H 8166) would better position the members of the insolvent plan to reach fair, equitable settlements with multiple defendants, which is a possible outcome of the pension plan case.

The $85 million St. Joseph pension plan covers about 2,700 current and former employees of Our Lady of Fatima and Roger Williams hospitals, but was left insolvent when contributions to it ceased following the sale of Fatima and Roger Williams to Prospect Medical Holdings in 2014.

Similar legislation was enacted in 2014 to induce settlements in the 38 Studios litigation, in 2006 to address the Station fire litigation, and in 1993 to address litigation stemming from the Rhode Island Share and Deposit Indemnity Corporation (RISDIC) credit union collapse.

“Whatever happens with the litigation, all of Rhode Island wants to see the fairest possible settlements for the thousands of people whose retirement has been thrown into chaos by the pension fund’s insolvency. This legislation will help ensure that they are able to pursue every avenue for restitution that is available to them, and reach equitable settlements,” said leader Shekarchi (D-Dist. 23, Warwick).

The bill, which has been assigned to the House Health, Education and Welfare Committee, is cosponsored by House Speaker Nicholas A. Mattiello (D-Dist. 15, Cranston), Rep. Scott A. Slater (D-Dist. 10, Providence), Rep. Joseph M. McNamara (D-Dist. 19, Warwick, Cranston) and Rep. Mia A. Ackerman (D-Dist. 45, Cumberland, Lincoln). Identical legislation (2018-S 2112) has been introduced in the Senate by Senate President Dominick J. Ruggerio (D-Dist. 4, North Providence, Providence).

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