Here are four things to know.
1. The issue affects more than 2,000 current and former nurses at Our Lady of Fatima Hospital and the former St. Joseph’s Hospital, both in North Providence, R.I. The hospitals were sold in 2014 as part of a joint venture between Providence, R.I.-based CharterCare Health Partners and Los Angeles-based Prospect Medical Holdings.
2. The retirement benefits were put in temporary receivership because the plan is “severely underfunded and requires additional capital of over $43 million to reach a 100-percent funding level,” St. Joseph Health Services of Rhode Island said, according to the report, which cites a court petition.
3. The Providence Journal reports St. Joseph Health Services of Rhode Island called for appointing a receiver and approval for decreasing pension benefits by 40 percent across the board.
“Absent judicial intervention, [St. Joseph Health Services] anticipates that the plan will be terminated and its funds distributed in a manner that will result in current Plan beneficiaries receiving approximately 60 percent of their accrued benefits and all others receiving nothing,” the petition states, according to the report.
4. The report states attorney Stephen Del Sesto will now serve as temporary receiver for the retirement benefits, per order by Superior Court Judge Michael Silverstein. The judge expects a recommendation by Oct. 11.
Read more on this story, including the background of the defined-benefit pension plan, here.
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