The PBGC will assume responsibility for the underfunded pension plan of North General Hospital, New York, confirmed PBGC spokesman Gary Pastorius.
The hospital will be unable to make benefit payments to the plan once it completes liquidation under Chapter 11 bankruptcy protection. The hospital filed for Chapter 11 bankruptcy on July 2 and ceased operations July 20.
The plan is 33% funded, with $8.7 million in assets to cover $26.7 million in liabilities, according to the Pension Benefit Guaranty Corp. The PBGC expects to assume responsibility for the entire $18 million shortfall.
The plan has been frozen since Dec. 31, 2005.
