SRHS responds to appeals court ruling on pension plan settlement

SRHS responds to appeals court ruling on pension plan settlement

NEW ORLEANS, LA (WLOX) - Singing River Health System filed its response to a court ruling that sent its pension fund settlement back to a lower court.

In July, the 5th Circuit Court of Appeals did not approve the settlement, ruling that there was no guarantee there was enough money to pay all the claims.

In its newly-filed, 126-page response, SRHS lays out its case in favor of the settlement. The company said based on its 35-year cash flow projection, the health system will have the ability to make all necessary payments to the pension plan.

“Singing River Health System on Monday filed a brief with the federal court overseeing the pension settlement. In order to approve the settlement, the Fifth Circuit Court of Appeals asked for additional information regarding the health system’s financial health and ability to pay into the fund.  The brief demonstrates how the health system’s financial turnaround is now generating enough net revenue to fund the proposed settlement for the foreseeable future. In fact, Singing River has already deposited over $7 million into an escrow account for the plan pending the outcome of the settlement, and committed to a total of $156 million over the next 34 years to support the plan, all under the supervision of the courts,” SRHS attorney Kelly Sessoms said in a statement.

The proposed settlement is now in the hands of U.S. District Judge Louis Guirola.

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