The PBGC is taking over the underfunded pension plan of St. Vincent Catholic Medical Centers, New York, which filed for Chapter 11 bankruptcy protection in April and is selling off its assets.
The hospital system’s pension plan, which has about 9,500 participants, is 55% funded, the Pension Benefit Guaranty Corp. said Tuesday. With $622 million in liabilities and $345 million in assets, the federal corporation said it expects to cover about $267 million of the $277 million funding shortfall.
The PBGC said it is stepping in because the plan will be unable to make benefit payments and would be abandoned after the hospital system’s assets are liquidated. The hospital system closed its facilities in May. No buyer has agreed to assume responsibility for the plan.
Jerry Geisel is editor-at-large at Business Insurance, a sister publication of Pensions & Investments.