The Pension Benefit Guaranty Corp. is taking over two pension plans sponsored by Verity Health System of California, a bankrupt nonprofit that is being acquired by the KPC Group, Pensions & Investments reported. The Verity Health System Retirement Plan A is estimated to be 52 percent funded, with $306 million in underfunding, while the Verity Health System Retirement Plan B is estimated to be 74 percent funded, with $2.8 million in underfunding. Verity and 16 affiliates filed for chapter 11 protection in the U.S. Bankruptcy Court in Los Angeles on Aug. 31, 2018, after amassing more than $1 billion in bond debt in addition to the unfunded pension liability and other fiscal demands, according to court documents. KPC Group is the parent company of KPC Health, operator of seven hospitals in Southern California. KPC Group made a $610 million stalking-horse bid for St. Francis Medical Center, St. Vincent Medical Center, Seton Medical Center and several other facilities.
