Compliance October 4, 2007

PBGC to Absorb $47M Shortfall in Brooklyn Hospital Pension Plan

October 4, 2007 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) will take on the pension plan of bankrupt Brooklyn Hospital Center, which is 27% funded.
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According to a press release , the private-sector pension insurer will be responsible for the pensions of more than 1,770 workers and retirees of the The Brooklyn Hospital Center in New York.

 

The PBGC stepped in because the company failed to pay more than $33 million in legally required pension funding contributions, the agency said.

The Brooklyn Hospital Center Retirement Income Plan has $19.5 million in assets to cover $73 million in liabilities. The PBGC expects to be responsible for $47 million of the $53.5 million shortfall, the announcement indicated.

The hospital had planned to end the pension plan as part of its bankruptcy reorganization. It filed for bankruptcy protection in September 2005, at which point the court ruled that it met the financial requirements for a distress termination of the plan after it found that the hospital couldn’t meet it debts under a reorganization in it held onto the plan.

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