PBGC Takes on a Pennsylvania Hospital Pension Plan
The PBGC said it stepped in because the plan was
unable to pay benefits when due and would be abandoned
following the sale of all the hospital’s assets. In
October 2001, Easton Hospital sold its properties to
Northampton Hospital Corp., a unit of Franklin,
Tennessee-based CHS Community Health Systems, and the
transaction did not include the pension plan, according
to the announcement.
The PBGC estimates the Easton Hospital Employees’
Pension Plan, terminated on December 31, 2005, is 57%
funded, with about $53 million in assets to cover some
$93 million in benefit liabilities. The agency said it
expects to be responsible for the entire $40 million
shortfall.
Within the next several weeks, the PBGC will send
notification letters to all plan participants. Under
federal pension law, the maximum guaranteed pension at
age 65 for participants in plans that terminated in 2005
is $45,614 per year.
Workers and retirees with questions may consult the PBGC
Web site,
www.pbgc.gov
or call 800-400-7242.
Retirees of Easton Hospital who draw a benefit from the
PBGC may also be eligible for the federal Health Coverage
Tax Credit. Further information may be found on the
PBGC Web site at
http://www.pbgc.gov/workers-retirees/benefits-information/content/page13692.html
.
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