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February 11, 2016

N.Y. Jewish Network Seeks $42 Million From Bankrupt Charity

The UJA-Federation of New York has filed claims for more than $42 million as part of bankruptcy proceedings for FEGS, the big New York City social-service charity that collapsed last year, The Forward reports. The federation contends FEGS owes the money to a pension fund that covers more than 11,000 current and former employees at UJA-affiliated nonprofits.

The retirement plan remains responsible for payments to former staff at FEGS, once a sprawling, largely government-funded service provider that shut down in January 2015 in the face of a $19 million budget shortfall and declared bankruptcy two months later. The federation claims, filed in October but previously unreported, include $5.4 million for FEGS's 2013 and '14 contributions to the pension fund and $37 million for "withdrawal liability," a sum due when an employer leaves a joint retirement plan to cover future payments to its retirees.