Singing River Health System in Pascagoula, Miss., has frozen its employee pension fund, according to a letter that CEO Kevin Holland sent to employees, the Sun Herald reported.
The fund also is set to eventually be "officially liquidated," according to the report.
The Sun Herald cites Mr. Holland's letter, which, according to the report, states Singing River Health System is "facing unprecedented financial challenges." Those challenges include a $30 million loss each year, according to the report.
Mr. Holland's letter, according to the report, alludes to a new defined benefit plan that is in the works.
More than 2,300 people are enrolled in the pension plan, according to the report, which sources the health system.
According to the report, Mr. Holland told employees in his letter, "Given the low percentage at which our pension plan is currently funded, we are acting now to ensure we have as much funds as possible …"
"By taking this action, we are preserving as much of this retirement benefit for you as we possibly can, as well as ensuring the financial viability of SRHS …"
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