Since 1872, Christ Hospital has provided health care services to Hudson County, N.J. Like many hospitals around the country during the recent financial downturn, Christ Hospital saw growing numbers of uninsured and charity patients come through its doors. People got the care they needed, but at the expense of the hospital’s bottom line. Finally, mounting financial losses, combined with state budget cuts and other reverses, forced the hospital to seek bankruptcy protection.
Fortunately, the hospital will continue to serve the community under a new owner. But what about the pensions of the 2,500 caregivers and other staff? Well, PBGC has got them covered.
PBGC always wants pension plans to continue if possible. But when Christ Hospital told us it was in dire straits, our financial analysts looked carefully at the numbers. They concluded there was no way the hospital could continue to operate while paying for the pension plan, so we stepped in to take responsibility for paying the pension benefits.
The pension plan had a shortfall of about $90 million, which PBGC will make up from its insurance funds. Retirees will get their full benefit, up to the limits set by Congress ($54,000 a year for a 65-year-old).
If you’re a member of the pension plan you will get a letter from us soon with more information. In the meantime, click here for more information.
And welcome to PBGC