Linda Ober / The Citizen
Auburn Memorial Hospital has failed to pay millions of dollars into its employee pension plan, a federal tax lien filed this week reveals.
The hospital owes approximately $6 million in missed payments and interest for contributions to retirement plans for 2004 and 2005, according to hospital administrator Brendan McGrath. In response, the U.S. Pension Benefit Guaranty Corp. filed a federal tax lien at the Cayuga County clerk's office Thursday against the hospital's real property.
McGrath said that the hospital has been in negotiations with the Internal Revenue Service to try to obtain a waiver that would permit AMH to take longer to make its payments. The hospital has applied for the waiver, he continued, but it may take a number of months before it is approved or denied.
"We know we owe them money and we're involved in negotiations for the work out of that," McGrath said, noting the hospital had been notified that the lien would be filed.
He said the filing of the lien poses no danger for either current or future retirees and said there will be no missed retirement checks.
The federal lien is subordinate to a first position mortgage lien covering the real property held by Cayuga County, which has been working with the hospital to reverse its financial problems.
Read the full report in Friday's edition of The Citizen.
The hospital owes approximately $6 million in missed payments and interest for contributions to retirement plans for 2004 and 2005, according to hospital administrator Brendan McGrath. In response, the U.S. Pension Benefit Guaranty Corp. filed a federal tax lien at the Cayuga County clerk's office Thursday against the hospital's real property.
McGrath said that the hospital has been in negotiations with the Internal Revenue Service to try to obtain a waiver that would permit AMH to take longer to make its payments. The hospital has applied for the waiver, he continued, but it may take a number of months before it is approved or denied.
"We know we owe them money and we're involved in negotiations for the work out of that," McGrath said, noting the hospital had been notified that the lien would be filed.
He said the filing of the lien poses no danger for either current or future retirees and said there will be no missed retirement checks.
The federal lien is subordinate to a first position mortgage lien covering the real property held by Cayuga County, which has been working with the hospital to reverse its financial problems.
Read the full report in Friday's edition of The Citizen.