Mercy Hospital Pension Crisis | Cedar Rapids News

Mercy Iowa City’s historic hospital is in bankruptcy, with its underfunded pension plan at the heart of the crisis—actuaries found a $23 million shortfall, and since it’s not covered by the Pension Benefit Guarantee Corporation, former employees face tough choices. A new plan by the liquidation trustee aims to protect remaining assets by buying annuity contracts from an insurer, locking in benefits and shielding against market swings. But not everyone will get full payouts: retirees receiving payments first, then those eligible but not yet drawing, then younger members—each group gets fully funded before the next. If funds run out within a group, everyone in that group gets an equal percentage of what’s owed, based on annuity costs. Those already receiving payments likely get full benefits, others may get partial. A court hearing is set for September 22 to hear concerns before final decisions are made. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/14aac69a1df94f39