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Member, Beacon International Group, Ltd.
The Pension Benefit Guaranty Corp. will take over the pension plan of Landmark Medical Center, Woonsocket, R.I., the agency announced Friday.
The PBGC said in a statement that Landmark Medical Center, which is in receivership, could no longer pay its pension obligations and the plan would be abandoned after the center sells its assets.
According to PBGC estimates, the plan is 40% funded, with $23 million in assets and $58 million in liabilities. The PBGC expects to cover $25 million of the $35 million shortfall.
Landmark's operations have been under control of a special master appointed by the Rhode Island Superior Court in 2008. Since then, the medical center has attempted to reach several acquisition deals. A deal to acquire the hospital's assets has been tentatively approved, pending approvals from several state regulatory agencies.
The proposed purchaser, whose name could not be learned, will not assume the pension plan, PBGC officials said in a statement.
Hazel Bradford writes for Pensions & Investments, a sister publication of Business Insurance.