PBGC will pay retirement benefits for nearly 750 current and future retirees of Landmark Medical Center, which operates a 214-bed hospital in Woonsocket, R.I.
The agency stepped in because the medical center can't pay benefits, and the pension plan will be abandoned after Landmark sells all of its assets.
PBGC will pay all pension benefits earned by the hospital's retirees up to the legal limit of almost $51,750 a year for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
According to PBGC estimates, as of June 7, 2013 (the plan termination date), the pension plan was about 40 percent funded with $23 million in assets to pay $58 million in benefits. The agency expects to cover $25 million of the $35 million shortfall.
PBGC can provide general information now and will be able to answer more detailed questions once we receive the pension plan's records. Participants in the medical center's plan will be notified by letter after the transfer occurs.
For additional information, please email us at firstname.lastname@example.org or call 1-800-400-7242 (8 a.m. to 7 p.m. EST, Monday - Friday) (TTY/ASCII: call 1-800-877-8339 and ask to be connected to 1-800-400-7242).
Additionally, Landmark's retirees who get their pension from PBGC may be eligible for the federal Health Coverage Tax Credit. For more information, see PBGC's Health Coverage Tax Credit (HCTC) FAQs.
In June 2008 the Rhode Island Superior Court appointed a special master to take control of Landmark's operations. Since that time, the medical center has been involved with several failed acquisition deals. A transaction to acquire the hospital's assets has been tentatively approved, but requires additional approvals from several state regulatory agencies before the sale can be finalized. The proposed purchaser has not agreed to assume the pension plan.
Interested in more blog posts like this one? Sign up to receive updates from Retirement Matters.