PBGC to Take Plan of RI Hospital

June 10, 2013 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) will take responsibility for the pension plan of Landmark Medical Center.

The pension benefits cover nearly 750 current and future retirees of Landmark Medical Center, which operates a 214-bed hospital in Woonsocket, Rhode Island.

The agency stepped in because the medical center cannot pay benefits, and the pension plan will be abandoned after Landmark sells all of its assets.

According to PBGC estimates, as of June 7, the plan termination date, the pension plan was about 40% funded with $23 million in assets to pay $58 million in benefits. The agency expects to cover $25 million of the $35 million shortfall.