August 24, 2012 (PLANSPONSOR.com) - Hawker Beechcraft announced an agreement for handling its employee pension plans in its restructuring to exit bankruptcy.
After negotiations with the Pension Benefit Guaranty Corporation (PBGC), the company’s lenders and union leaders, it was agreed that accrued retirement benefits for participants in the company’s hourly/union plan will remain the responsibility of Hawker Beechcraft, according to a letter to employees from CEO Steve Miller and Chairman Bill Boisure. The agreement with the union is subject to approval by its membership.
Hawker Beechcraft will seek permission from the bankruptcy court to terminate the base and salaried plans, and hand them over to the PBGC.
The company currently utilizes a defined contribution plan for employees hired after January 1, 2007, and said going forward, it will provide all employees with contributions to a defined contribution plan in lieu of future contributions to the pension plans. According to the letter, the company estimates 100% of union plan participants and more than 99% of non-union pension plan participants will receive the full amount of pension benefits that have already vested.