Emergency Status Hearing Friday on St. Joseph Pension Fund Bankruptcy

Wednesday, September 06, 2017
GoLocalProv News Team

Hearing Friday at 2 pm on Friday
Court appointed receiver Stephan Del Sesto will be back in court much earlier than expected. The next hearing on the bankruptcy for nearly 3,000 members of the St. Joseph Health Services pension fund will be Friday, September 8, before Superior Court Judge Brian Stern.

Del Sesto was not supposed to be before the court until October 11. The hearing is necessary according to Del Sesto to update the court on emerging issues.

Presently, retirees face cuts to their payments of 40 percent due to the bankruptcy. As the pension fund was a "church plan" associated with the Diocese of Providence it is not federally insured.

The pension fund was placed into receivership on August 17 and since then GoLocal has uncovered a number of concerning issues including failure by the management of St. Joseph, while in was under the control of the Diocese of Providence to make scheduled pension contributions.

In addition, a GoLocal investigation found that RI Attorney General Peter Kilmartin failed to review critical documents while his office was reviewing, and ultimately, approving the sale of St. Joseph to CharterCare under the state’s Hospital Conversion Act.

AG Peter Kilmartin - many calling for him to step aside
Kilmartin failed to detect that the pension fund was suffering from a deficit of more than $126 million.

A number of state leaders have called for an independent investigation and for Kilmartin to step aside. Those asking for an investigation include Governor Gina Raimondo, Speaker of the House Nick Mattiello, Senate President Dominick Ruggerio, former Attorney General Arlene Violet, SEC investigator Ted Siedle, and Cranston Mayor Allan Fung. 

Mattiello, Violet, Siedle, and Fung have all called for Kilmartin to step aside.

The emergency status hearing will be held at 2:00 p.m. on Friday.

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