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Member, Beacon International Group, Ltd.
WASHINGTON—The Pension Benefit Guaranty Corp. is taking over the underfunded pension plan sponsored by St. Vincent Catholic Medical Centers, a hospital and health care system in New York that filed for bankruptcy in April and is selling off its assets.
The hospital system's pension plan, which has about 9,500 participants, is 55% funded, the PBGC said Tuesday. With $622 million in liabilities and $345 million in assets, the federal corporation said it expects to cover about $267 million of the plan's $277 million funding shortfall.
The loss, the biggest plan termination announced this year, was not included in the agency's prior financial statements.
The PBGC said it is stepping in because the plan will be unable to make benefit payments and would be abandoned after the hospital system's assets are liquidated. The hospital system closed its facilities in May. No asset buyer has agreed to assume responsibility for the plan.