Care New England CFO: Memorial Hospital employees' pensions secure despite closure

Joseph Iannoni, executive vice president and CFO of Providence, R.I.-based Care New England, said despite the planned closure of Pawtucket, R.I.-based Memorial Hospital, all hospital employees will be guaranteed their pension, according to Rhode Island Public Radio.

Mr. Iannoni said roughly 2,100 current and former Memorial Hospital employees are enrolled in the hospital's pension plan, which Care New England is legally obligated to fund even after the hospital officially closes.

Care New England is required to make regular contributions into the plan, which is currently more than 80 percent funded, according to Mr. Iannoni. If the hospital is sold to another health system, such as Boston-based Partners HealthCare, the parent company would similarly be required to fund the hospital's pension plan.

Mr. Iannoni told Rhode Island Public Radio 300-plus Memorial Hospital employees have accepted Care New England's offer to receive a lump-sum settlement for the pension benefits. The payments are part of the organization's "de-risking" strategy to reduce the plan's liability and make it "easier to continue to fund the plan in the future," the report states.

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