The PBGC took over two defined benefit funds of Interfaith Medical Center, the agency announced Thursday.
The multisite non-profit health-care system based in New York could not meet the minimum funding requirements, according to officials at the Pension Benefit Guaranty Corp., who estimate the Health Services Retirement Plan and Interfaith Medical Center Nurses Pension Plan, with a combined $108 million in assets, are 64% funded. The agency expects to cover $60 million of the $68 million shortfall, the announcement said.
In December 2012, Interfaith Medical sought Chapter 11 protection in the U.S. Bankruptcy Court in New York. The state of New York provided financial support for a restructuring plan filed with the court on March 21, which did not cover the pension funds, according to the PBGC statement. A hearing is scheduled for May 30, but the PBGC took over the two plans on Thursday.
Calls to Interfaith Medical and the pension funds' administrative offices were not returned by press time.