State lawmakers on Thursday announced a bill that would prevent the dissolution of a Capital Region hospital corporation amid the collapse of its $53 million pension fund.

The bill, sponsored by Republican Sen. Jim Tedisco and Democratic Assemblyman Angelo Santa Barbara would halt the dissolution until an audit or investigation of the circumstances surrounding the pension fund’s collapse is conducted by the state.

The pension fund’s problems affected more than 1,100 former employees of the hospital, seeing their benefits either reduced or ended, The hospital closed 10 years ago and was absorbed by Ellis Medicine.

“We have over 1,100 Capital Region residents who worked hard, did their job and played by the rules for many years as loyal St. Clare’s Hospital employees and now the retirement they’ve been planning for has evaporated in what seems like a snap of a finger,” Tedisco said in a statement. “We’ve already formally asked the Governor, Attorney General and Comptroller to look into what happened to the St. Clare’s Pension Fund and the taxpayer dollars that were spent on it more than a decade ago, but they have yet to do so.”

At the time of the hospital’s closure, the state paid $50 million to cover transition costs, as well as $28 million for the needs of its pension fund. The hospital’s vestige corporation wants to dissolve itself, petition the state Supreme Court to do so.

The bill would have the New York Department of State delay the dissolution approval until a review is conducted, either by the Department of Health, the attorney general or state comptroller.

“Following the termination of the St. Clare’s retirement fund, employees of the former St. Clare’s Hospital in Schenectady were told that they will receive no retirement benefits—they deserve to know why,” Santabarbara said.

“This attempt to now dissolve the St. Clare’s Corporation while we are calling for an investigation into the matter is untimely and unacceptable,” Santabarbara added. “We have certainly not given up on trying to find a solution to fully restore the pension fund and neither should the Corporation.”