The PBGC will take over the defined benefit pension fund of Landmark Medical Center, Woonsocket, R.I., the agency announced Friday.
The Pension Benefit Guaranty Corp. said in a statement that Landmark Medical Center, which is in receivership, could no longer pay its pension obligations and the plan will be abandoned after the center sells its assets.
According to PBGC estimates, the pension plan is 40% funded, with $23 million in assets and $58 million in liabilities. The PBGC expects to cover $25 million of the $35 million shortfall.
Landmark's operations have been under control of a special master appointed by the Rhode Island Superior Court in 2008. Since then, the medical center has attempted to reach several acquisition deals. A deal to acquire the hospital's assets has been tentatively approved, pending approvals from several state regulatory agencies. The proposed purchaser, whose name could not be learned, will not assume the pension plan, PBGC officials said in a statement.
Calls to officials at Landmark Medical Center familiar with the pension and acquisition situations for comment were not returned by press time.