Benefits June 17, 2011
MA Hospital Moves to 403(b) as It Files for Bankruptcy
June 17, 2011 (PLANSPONSOR.com) - Northern Berkshire Healthcare Inc, the parent of North Adams Regional Hospital, has filed for bankruptcy protection to reorganize under Chapter 11.
Reported by Rebecca Moore
The Boston Business Journal reports that the board of directors of the health care system voted to go ahead with the bankruptcy filing, and it was filed Monday. The board also voted to terminate the pension plan.
Following the decision to terminate the pension plan, all employees were moved to a 403(b) retirement plan, according to the news report. The health care system will continue to pay out funds from the pension plan that have already been accrued.
The Boston Business Journal said Northern Berkshire’s second largest obligation is from pension funds, in the amount of $20.8 million, held in trust by the Pension Benefit Guaranty Corporation (PBGC).
Following the decision to terminate the pension plan, all employees were moved to a 403(b) retirement plan, according to the news report. The health care system will continue to pay out funds from the pension plan that have already been accrued.
The Boston Business Journal said Northern Berkshire’s second largest obligation is from pension funds, in the amount of $20.8 million, held in trust by the Pension Benefit Guaranty Corporation (PBGC).