September 28, 2012 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) will take responsibility for pension plans sponsored by Menninger Foundation and its affiliates, Topeka, Kansas-based mental health service providers.
The agency said it will pay retirement benefits for Menninger’s pension plan because the foundation does not meet minimum funding requirements and will be unable to pay benefits following its breakup.
PBGC will pay all pension benefits for more than 1,300 current and future retirees of Menninger up to the legal maximum of about $56,000 a year for a 65-year-old.
According to PBGC estimates, the plan is 33% funded with $32.5 million in assets to pay $97.4 million in benefits. The agency is expected to cover nearly all of the $64.9 million shortfall.