They worked at a Catholic hospital for decades. Then it took away their pension

[BadGimp]

This discussion thread was locked as off-topic by Omaha Steve (a host of the Latest Breaking News forum).

Source: cnbc.com

- Jerry and Kathy Adach, former employees of St. Clare’s Hospital, were told they are losing their $27,000-a-year pension because it is low on funds.

- Around 1 million workers around the country could be in a similar situation due to a loophole in federal retirement law.
St. Clare’s Hospital was everything to Jerry and Kathy Adach.

They married after meeting at the Schenectady, New York area hospital, where both worked, in the early ’80s. Their two daughters were born there. The couple, who devoted a combined 59 years of service to the facility, had expected to retire with a good pension from the hospital.

That is, until last year, when their former employer — which went out of business back in 2008 — delivered a gut punch: Its pension plan was in financial distress and wouldn’t pay a dime of their expected benefits.

Read more: https://www.cnbc.com/2020/02/13/distressed-pension-funds-could-take-away-benefits-for-hospital-workers.html

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This is the new normal (not even that new).

Q: Do we hear ANYTHING from the GOP or Trump on this?

This makes my blood boil.

[Midnight Writer]

1. "Loophole" is intentional. Started in Reagan years, laws weakened pension protection for workers.

[DENVERPOPS]

4. Just one

of the most corrupt things that were shoved thru in his administration. I could describe maybe 30 others that have come down upon us these past decades..........

I was screaming my head off about what awaited retirees maybe 20-30 years down the road......

Everyone, especially the Reagan Democrats thought I needed massive psychotherapy.......

[bucolic_frolic]

5. Some relatives of mine

lost pensions in a corporate buyout in the early 1960s. Congress passed pension reform in the 70s, I think, and revised again later. Pension Benefit Guarantee Corporation was created 1974.

https://www.pbgc.gov/

[Midnight Writer]

7. My Dad's corporation was bought by a French Co. that actually increased his pension plan.

His understanding was that French law stipulated strong pension protections and they were complying with that.

When he retired, he got pension plus lifelong health care.

[Wellstone ruled]

8. Yes,

and as a Teamster,our Pension Plan was under direct supervision of the DOJ and Treasury for decades. We were only allowed to purchase low yield Treasuries and Low yield Bonds. And as a result,our Pension Fund is in tough shape. Warning letters have been seen to all Persons that are presently drawing from the fund. This letter states,if our Continuing Balance drops below a predetermined amount calculated by our Auditors,then their will be automatic cuts to pay outs.


Reagan era nut jobs screwed Millions on his way out the door.

[Firestorm49]

2. Absolutely outrageous..

[mahatmakanejeeves]

3. Church plans have different rules

I was wondering why the Pension Benefit Guaranty Corporation wasn't involved.

From the article:

Federal retirement law typically puts a backstop in place to prevent this sort of doomsday financial scenario for retirees and near-retirees.

However, St. Clare’s was affiliated with the Roman Catholic Church. Its pension, and those of other nonprofits throughout the U.S. with ties to religious entities, are beholden to different rules that could ultimately leave people empty-handed or with reduced benefits.

“We have seen estimates that it affects about 1 million people,” said Dara Smith, a senior attorney for the AARP Foundation representing many of the former St. Clare’s workers.

For families like the Adachs, who are near retirement with little time to make up for lost pension income, or retirees living on fixed incomes and unable to go back to work, the effect could be financially crippling.

[Dan]

12. Doesn't the Catholic Church (Rome)

have money, lots of money, couldn't they contribute or help address this mess?

[Merlot]

17. Sorry, all their extra money goes towards lawsuit payouts

What extra they have left is used to make sure no one gets birth control.

[Collimator]

18. A PBS program that I saw

Explained that the revenue stream in the Catholic Church runs in only one direction. All the parishioners (and any other donors) throughout the world give to their local church. The local church always sends a cut to the Vatican. The rest, presumably, is channeled into the services that the local church provides or sponsors.

The Vatican does not send out money to any actual, boots on the ground church or Catholic service organization.

In a way, it's like Multi-Level Marketing. There's a scene in Inferno where Stellan Skarsgard's character forcefully defends the Catholic Church by stating that " My church heals the sick. My church feeds the hungry. . ."

But it doesn't. There are people out in the world providing time, money and services to people in need who are affiliated with the Catholic Church. But they have to wrangle their own funding and--as mentioned before-- are expected to provide a portion of their "take" to their governing diocese which then sends some of the money up the food chain.

The people providing the actual assistance are basically paying to be affiliated with the Catholic Church which lends them legitimacy and identity.

The Catholic Church is a brand. And the folks who manage the brand's presentation to the world are the ones who benefit the most from the name.

[Rider3]

6. Figures...

Companies don't care how long you worked for them, the dedication you gave to the job, or how you may have profitted the Company. When it comes to their bottom line, they'll throw their own mother under the bus to keep the money. I see it happen all the time and a lot more often these days.

[Cryptoad]

9. I wonder,,,,

how many of these millions of affected people oover the years refused to support union workplaces,,,,, btw all the vaults in Vatican are still full of the Gold stolen from my Native American ancestors,,,,,,,,,

[MarcA]

15. I seriously wonder what the Pope has to say about this. n/t

[pnwmom]

10. This looks like the tip of the iceberg, because this issue affects all religious institutions.

From the article:

However, St. Clare’s was affiliated with the Roman Catholic Church. Its pension, and those of other nonprofits throughout the U.S. with ties to religious entities, are beholden to different rules that could ultimately leave people empty-handed or with reduced benefits.

“We have seen estimates that it affects about 1 million people,” said Dara Smith, a senior attorney for the AARP Foundation representing many of the former St. Clare’s workers.

[VMA131Marine]

11. So it was a church plan when it was avoiding payments to the PBGC ...

But it has nothing to do with the church now that the plan is in trouble ...

From the article

“St. Clare’s is a separate corporation,” she added. “Its pension was managed by the corporation, not by the diocese.”

[LittleGirl]

13. But but ...the stock market is so high eom

[King_Klonopin]

19. NYSE near 30,000 and NASDAQ near 10,000

yet, somehow, they ran out of money??????? BS BS BS BS

Unless they invested in Consolidated Yokahama Smog Bags.

[LittleGirl]

20. Somebody is getting rich

But it ain’t us little people.

[keithbvadu2]

14. Don't forget to tithe from what little you have left.

Don't forget to tithe from what little you have left.

The churches need your money and expect you to honor your 'obligations' to them.

Sarcasm?

[Politicub]

16. Pensions were a nice perk long ago

I’ve been in the workforce for 30+ years and none of the companies I have worked for had pension plans. We were expected to fund our own retirement through a 401k, with a meager contribution from the corporate parent.

401ks are invested mainly in mutual funds traded in the Wall Street casino.

My husband’s brother is a union plumber and he retired with a nice pension. I’m envious. Right to work laws have been so damaging since collective bargaining is what ensured him a secure retirement.

[Omaha Steve]

21. After a review by forum hosts....LOCKING

This is a feature story, an analysis, not LBN.