The Singing River Health System froze the employee pension fund on Saturday, according to a letter from CEO Kevin Holland to employees, and it will be “officially liquidated” in the coming months.
In the letter, Holland tells employees that the organization is “facing unprecedented financial challenges” that must be addressed and that the county-owned hospital system is losing $30 million a year.
In the light of that, Holland tells employees the pension plan that hundreds of them have been contributing to for years, some for decades, will be taken apart.
The letter is dated Monday, and health system spokesman Richard Lucas confirmed that town hall meetings on the issue will begin Thursday.
In his letter, Holland gives “key decisions” that employees have been waiting to hear since Oct. 31, when Holland first announced that the pension plan was in trouble.