NATCHEZ — The last 10 months of service may not count toward retirement for employees at Natchez Regional Medical center even though they’ve been paying into the system.

NRMC participates in the Public Employees Retirement System, in which employees are required to put nine percent of their earnings and the employer is required to match with 15 percent.

When the hospital filed for bankruptcy in March, PERS was listed as one of its creditors with back payments owed from November 2013 forward. After meetings with PERS representatives Thursday and Friday, NRMC employees were told the employer’s match had not been paid into the system even after the bankruptcy was filed.

Without the employer contribution, the PERS system cannot award service credit for the period of time that was unmatched, PERS Executive Director Pat Robertson said.

“Until everything is resolved and gets through, we are evaluating what it is and how we are going to handle it,” Robertson said.

The situation is an unprecedented one for PERS, Robertson said, and during NRMC’s 2009 bankruptcy the hospital never missed a retirement payment.

“Prior to the (2014) filing, I felt they would continue to make the payments on behalf of the employees,” Robertson said.

NRMC employees said Friday many were “very angry” at the news.

“When the bankruptcy came about, around that time we were told that the hospital contributions were not being made to PERS, but we were assured that throughout the bankruptcy PERS would be first in line to be paid, that our money would be going to PERS and the hospital would be catching up,” said one employee who asked her name be withheld.

“You had people who had people who were counting on these last 10 months for retirement because they had 24-and-a-half years in. They thought they were paying in but in realty weren’t paying into retirement.”

The employee said she believed the administration said the PERS system would be paid to prevent a mass workforce exodus.

Robertson said because the repayment to PERS is tied into the hospital’s bankruptcy settlement, a final answer of what may happen may not be forthcoming until 2016.

“I am not sure how we will get it finalized and worked out, but they would definitely get the service credit or the money would be refunded to them,” Robertson said.

“We’re told that the settlement might be 50 cents on the dollar, and it is going to be very difficult at 50 cents on the dollar to allocate that back to their individual accounts.

“Our goal and what we would like would be to handle it in the way that is most fair to the individual members, but we also have to take into consideration what is fair to the overall PERS membership and other employers.”

The unnamed employee said one of the solutions discussed this week included remitting the funds back to NRMC to be redistributed to those who paid into the system.

“That brings about concerns of will we get our money or will we not get our money,” the employee said. “We are upset about the management of our money and not being kept up to date. We still don’t know the entire story.”

Another employee — who also asked her name be withheld — said many NRMC staff members did not realize that the retirement system did not count without the employer contribution.

“If it is not illegal, it is unethical and wrong,” the second employee said. “I feel there is a rush to get this (bankruptcy and hospital sale process) done and let those who benefit sail off into the sunset.”

The second employee said any anger about the retirement system and upset about the administration of the hospital should not be construed as anger at NRMC’s pending buyer, Community Health Systems.

The second employee said she was glad CHS would be coming to the community and would be able to run the hospital more effectively and have access to more resources.

NRMC Chief Financial Officer Charles Mock declined to speak on the record Friday. NRMC Chief Executive Officer Donny Rentfro did not return a message seeking comment.

NRMC filed bankruptcy in late March, in the midst of an effort to sell the county-owned hospital. The sale was officially awarded to CHS Thursday, though it is pending the approval of the bankruptcy court.

If the court approves the sale, it will close Sept. 30.