US - The Pension Benefit Guaranty Corporation (PBGC) has taken on a further US$29m in liabilities after it assumed responsibility for the Victory Memorial Hospital Pension Plan.
According ot the PBGC, Victory missed almost $8m in legally required contributions, and the plan is only 42% funded, with about $20m in assets to cover nearly $49m in promised benefits.
The PBGC said it expected to be liable for the entire $29m shortfall of the plan, which has been frozen since 1997.
The PBGC stepped in after Victory failed to make legally required minimum funding contributions to the plan, and the agency determined the plan would be unable to pay benefits when due because of underfunding.
But the agency said assumption of the plan would have no material effect on the PBGC's balance sheet, as an estimate of the liability was included in its fiscal 2005 financial statements according to generally accepted accounting principles.
The pension plan terminated as of 15 September, 2005, and PBGC became trustee on 15 June, 2006.
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