A news release said the PBGC is stepping in because the underfunded retirement plan will be unable to make benefit payments and will be abandoned after the hospital completes its bankruptcy liquidation proceeding. North General filed for bankruptcy on July 2, 2010, ceased operations as of July 20, 2010, and discharged most employees except those handling the wind-down and sale of the hospital’s assets, the PBGC said.
The North General Hospital Pension Plan is 33% funded, with $8.7 million in assets to cover $26.7 million in benefit liabilities, according to PBGC estimates. The agency expects to be responsible for the entire $18 million shortfall in the pension plan, which has been frozen since December 31, 2005.
The plan terminates as of Wednesday.